Gold Prices in UAE at Historical Highs

Gold Prices in UAE: Is Dh400 Per Gram the New Normal?

In recent months, the price of gold in the UAE, especially in Dubai, has soared to historical highs. In April, the price of 24-karat gold surpassed the Dh400/gram threshold for the first time, prompting many investors and buyers to wonder: Is now the time to invest in gold?

What's Behind the Price Surge?

The rise in gold prices is driven by multiple global factors. Previous US presidential tariff strategies, geopolitical tensions, falling interest rates, and a growing demand for gold by central banks have all contributed to the increase. Globally, gold hovered around $3,306 per ounce, marking a modest rise of 0.13%, while locally in Dubai, 24-karat gold stood at Dh400.25 and 22-karat at Dh370.75 on Wednesday evening.

What Do Experts Say?

Analysts suggest that current prices are not just temporary phenomena. Experts believe that in the medium to long term, the price of gold may persist above Dh400. Although short-term market volatility is possible—due to ongoing trade negotiations, new tariffs, or agreements—the long-term outlook predicts stable growth.

Global economic uncertainties, such as America's growing trade deficit, the sharp rise in the debt-to-GDP ratio, and the effects of previous tax cuts, are prompting investors to seek safe havens—gold has long been regarded as such an asset.

What Can We Expect in Upcoming Years?

Expert forecasts indicate that gold prices could rise to $3,700 by the end of the year and reach up to $4,000 by mid-2026 per ounce. This would be a significant rise compared to current levels, making now a potentially opportune time for those planning in the long term to act.

What Should Buyers Do?

Gold holds not only financial but also emotional value in the UAE, especially concerning marriages, family events, and other significant milestones. Experts suggest that instead of panic buying, buyers should continuously monitor global indicators such as interest rates, inflation, geopolitical situations, and central bank reserves. Smaller, regular purchases may yield favorable returns over the long term.

The Jewelry Market Situation

Dubai's gold market is famous for its stable demand, reinforced by cultural and traditional factors. Jewelry serves not just as fashion items but also as long-term value-holding assets. Industry participants are confident that gold will continue to be a popular choice among UAE residents and investors.

Conclusion

Although current prices may seem unusual at first glance, the underlying economic and market reasons warrant careful consideration. Gold remains one of the most reliable vehicles for portfolio diversification and asset stability. For those considering buying now, it is wise to think long-term strategy and not forget: gold is not only an investment but also holds emotional value that can span generations.

(Source of the article: Century Financial release.)