UAE Gold Prices Hit Record Highs, Buyers Shocked 2025

REAL ESTATE2 months ago

Gold prices in the United Arab Emirates have reached record highs, creating a major buzz among investors, jewellers, and regular buyers. The sharp rise, seen both in global markets and local souks, has led to significant changes in buying trends across Dubai, Abu Dhabi, and Sharjah.

According to traders, the sudden surge in gold rates is largely influenced by global economic uncertainty, rising inflation, and investor interest in safe-haven assets like gold. This recent jump has made headlines, especially in Dubai – known globally as the “City of Gold.”

Record-Breaking Prices Across UAE

As of today, July 16, 2025, the price of 24K gold in Dubai touched approximately AED 285 per gram – its highest in recent history. Similarly, 22K gold stood at AED 265 per gram, while 21K and 18K gold were priced at AED 255 and AED 220 respectively.

This upward trend has taken both jewellers and consumers by surprise. Many customers who had postponed their wedding jewellery purchases or festive shopping now face a dilemma as gold prices continue to soar.

“We were expecting gold to stabilize after last month’s hike, but this week’s surge has broken all previous records,” said Jameel Khan, a gold trader at Dubai’s Deira Gold Souk.

Global Market Driving the Rise

Gold prices in the UAE are closely linked to international rates. In global markets, gold crossed USD 2,550 per ounce earlier this week. Experts cite several reasons for this spike:

Geopolitical tensions in various parts of the world
Persistent inflation in key economies
Weakening US dollar due to rate cut speculations
Increased central bank gold buying in Asia and the Middle East

These factors have boosted investor confidence in gold, which is widely viewed as a “safe investment” during economic instability.

“Gold is acting as a hedge against inflation and political risks,” said economist Radhika Nair. “People are pulling out of high-risk assets and moving into precious metals. This behavior is reflected in the UAE as well.”

Impact on Local Consumers and Retailers

The price rise has impacted customer footfall in jewellery shops. Retailers say that while the high prices have slowed down everyday purchases, it has also attracted a different group of buyers – investors looking for long-term gains.

“We’ve seen more buyers from the investor segment, especially people who buy gold bars or coins instead of jewellery,” said Farah Malhotra, marketing head at a leading gold brand in Dubai Mall.

Meanwhile, those planning weddings or gifts are now forced to rethink their plans or reduce the quantity of gold they initially intended to purchase.

“I was saving for my daughter’s wedding. But with this price, we might need to cut down the size of jewellery sets,” said Ahmed Al Rawi, a resident of Sharjah.

Jewellers Offer Discounts and Exchange Deals

To counter the slow jewellery demand, many gold retailers across the UAE are introducing limited-time offers, exchange deals, and free making charges to encourage sales.

Popular promotions include:

Zero making charge on select jewellery items
Gold exchange programs with added value
Festival deals for Eid and wedding season

“Customers are more cautious now. We are focusing on providing better deals and flexible purchase options to support them,” said Meena Varghese, owner of a jewellery showroom in Abu Dhabi.

What Should Buyers Do Now?

Financial experts are divided on whether buyers should invest in gold now or wait for prices to dip.

Some say gold prices may continue to rise in the short term due to global tensions and the expected slowdown of Western economies. Others advise waiting for potential corrections.

“If you are a long-term investor, it’s still a good time. But if you’re a consumer looking to buy jewellery, it may be wise to wait and watch,” said analyst Omar Shaikh.

People who plan to buy gold as a form of savings are advised to invest in small quantities or consider digital gold options available on several UAE platforms.

Dubai Gold and Jewellery Group’s Statement

The Dubai Gold and Jewellery Group (DGJG), one of the largest trade bodies in the region, has released an official statement, assuring buyers that despite global fluctuations, the UAE remains a reliable and competitive market for gold.

“We understand the concerns of buyers, but we urge people to look at gold from a long-term value perspective. Dubai offers the best quality, purity, and competitive pricing,” the statement read.

DGJG also highlighted the role of Dubai as a key global hub for gold trade and reaffirmed their commitment to transparent pricing and customer support.

Outlook for the Rest of 2025

Market watchers predict that gold may stay volatile for the next few months. Much will depend on global political developments, US interest rate policies, and inflation trends.

Some projections suggest gold could hit USD 2,600 per ounce by the end of the year if current conditions persist. This could push UAE gold rates even higher, especially for 24K and 22K varieties.

For now, customers are advised to track rates daily, set alerts on gold apps, and make use of promotional offers wherever possible.

Final Thoughts

The record-breaking gold prices in the UAE have turned the spotlight back on precious metals as a key financial and cultural asset. Whether buying for weddings, investment, or festivals, UAE residents are carefully navigating this price hike.

As always, experts recommend doing thorough research, checking purity and hallmarking, and consulting trusted retailers before making big purchases.

With Dubai continuing to shine as a gold trading hotspot, the market is expected to remain vibrant, even if the prices are high.