Gold Prices Surge: Market Trends for 2025

Gold Prices Soar: What to Expect in Late 2025?

The price of gold has been breaking new records over the past weeks, and analysts suggest this is just the beginning. The value of the precious metal is soaring not only globally but also in the United Arab Emirates (UAE), with indications of further increases expected in the second half of the year. Analysts predict that gold could reach up to $3,400 per ounce (approximately 31 grams) between August and October this year. But what exactly is happening in the gold market, and what could be driving this dramatic price surge?

Gold Prices in Dubai

In Dubai, gold prices have also been setting records in recent weeks. The price of 22-carat gold was 321.5 dirhams per gram on Friday, while 24-carat gold reached 344.75 dirhams. These prices affect not only the local market but hold global significance as well, since Dubai is one of the world’s most important gold trading hubs. The increase in demand for gold and global economic uncertainties both contribute to this uptrend.

Factors Driving Gold Price Increases

Analysts point to several factors contributing to the rise in gold prices:

Global Economic Uncertainty: Geopolitical tensions, trade wars, and rising tariffs are causing investors to turn more towards gold as a safe investment option. Gold has traditionally been attractive during uncertain times, as its value remains stable in the long term.

Inflation Fears: Inflation concerns are rising in the United States and other major economies. The introduction of new tariffs and rising import prices can further fuel inflation, increasing demand for gold, which traditionally serves as a hedge against inflation.

Weakening Dollar: The weakening of the dollar on international markets may also contribute to the rise in gold prices, as gold prices are typically inversely proportional to the dollar’s value. A weaker dollar can lead to increased demand for gold.

Federal Reserve Monetary Policy: The Federal Reserve's (Fed) monetary policy plays a key role. Analysts believe that Fed rate cuts or a slowdown in rate hikes could further boost gold prices. Rate cuts decrease the allure of the dollar and bolster the demand for non-yielding assets like gold.

Technical Analyses and Forecasts

According to FxPro’s chief market analyst, gold prices are following a Fibonacci extension pattern, suggesting further gains. Gold prices began rising in October 2023 when the Fed signaled plans to ease monetary policy. Since then, gold prices have surged by over 55%. Although there was a decline due to profit-taking in November 2024, they strengthened again by year-end. After surpassing the $2,800 level, analysts believe gold prices could reach up to $3,400 per ounce between August and October this year.

Citi Research has also raised its gold average price forecast, increasing its three-month target from $2,800 to $3,000 and adjusting its 2025 average price projection to $2,900. Citi says the gold market remains strong, especially due to trade wars and geopolitical tensions strengthening the reserve diversification and de-dollarization trend.

What to Expect in the Coming Months?

According to a senior market analyst at xs.com, gold prices will remain supported, particularly due to inflation fears. Trump's trade policy, including the introduction of new tariffs, may increase import prices, leading to higher inflation in the United States. Under such conditions, investors often turn to gold to protect against the declining purchasing power of the dollar. Additionally, higher inflation could reduce the likelihood of Fed rate cuts, further enhancing gold's appeal.

The rising gold price trend remains in effect, and although corrections are expected from time to time, these should be seen as opportunities for investors. Supportive factors for the gold market—geopolitical tensions, inflation concerns, and a weakening dollar—remain present, making gold an attractive investment option.

Summary

Currently, gold prices are at record highs, and all signs indicate that this trend will continue in the second half of 2025. Global economic uncertainties, inflation fears, and the Federal Reserve's monetary policy all contribute to increased demand for gold. Analysts suggest gold prices could reach up to $3,400 per ounce between August and October this year, creating further opportunities for investors.

If you choose to invest in gold, it is advisable to keep an eye on global economic trends and market analyst forecasts to make the best decision. Gold continues to be a symbol of stability and security, especially in uncertain economic times.