Gold Rate in Dubai Reaches New High Amid Global Rally
The gold rate Dubai hit a new record this week, following international prices surging to $4,000 per ounce for the first time in history. The sharp increase reflects rising investor demand as global uncertainty continues to dominate markets.
According to CNN Business, the global gold price has climbed 51% so far in 2025, marking its strongest yearly rally since 1986. The surge comes amid expectations that the US Federal Reserve will cut interest rates again, driving traders and central banks to flock to safe-haven assets like gold.
In Dubai — one of the world’s biggest physical gold markets — the gold rate has mirrored the global trend. As of Wednesday, the price of 24K gold in Dubai crossed AED 240 per gram, while 22K gold traded around AED 220 per gram, marking an all-time high.
Global Factors Driving the Gold Price Boom
Several global factors have pushed gold to these record levels. Analysts cite central bank buying, a weaker US dollar, and geopolitical tensions as the main catalysts.
Michael Langford, Chief Investment Officer at Scorpion Minerals, said he expects the gold price to reach $4,300 per ounce in the next six months, driven by continued dollar depreciation.
“Gold thrives when markets are uncertain and interest rates are low,” Langford said. “With global inflation still stubbornly high and the Federal Reserve expected to ease further, we could see record highs sustained through 2026.”
The Federal Reserve is widely expected to implement two more rate cuts — one in October and another in December — which could further boost the gold rate Dubai and global gold demand.
Local Market Reaction: Dubai Gold Traders See Record Demand
In Dubai’s bustling gold souks, traders reported brisk buying activity despite higher prices. Many retail investors are viewing gold as a hedge against inflation and a safe long-term investment amid global market volatility.
“People are still buying, especially during festive and wedding seasons,” said Ahmed Khan, a gold trader in Deira. “When the gold price today rises, buyers rush to lock in rates before they climb further.”
The UAE’s gold sector has also benefited from a surge in tourists and investors from India and Europe, many of whom are taking advantage of Dubai’s tax-free gold policies.
Economic Uncertainty Fuels Gold’s Momentum
The ongoing US government shutdown has left markets without access to key economic data, including jobs and inflation reports. This data vacuum, combined with slowing global growth and tensions in Asia and the Middle East, has fueled investor anxiety — pushing more capital into gold.
Billionaire investor Ken Griffin told Bloomberg that gold’s rapid rise shows a major shift in global investor sentiment. “We’re seeing substantial asset inflation away from the dollar as people look to de-dollarize their portfolios,” he said.
Meanwhile, China’s central bank added gold to its reserves for the 11th consecutive month in September, highlighting continued institutional confidence in the metal.
What’s Next for Gold Prices and Dubai’s Market
Investment banks are becoming increasingly bullish. Goldman Sachs recently revised its December 2026 forecast for gold from $4,300 to $4,900 per ounce, citing resilient demand and strong central bank purchases.
Analysts in Dubai predict that if the gold price continues its upward trajectory, gold rate Dubai could touch AED 260 per gram by early 2026. However, they also warn of possible volatility if global interest rate cuts slow or if geopolitical tensions ease.
Still, for investors and jewelers alike, the outlook remains optimistic. Gold’s status as a “safe-haven asset” appears stronger than ever in a world grappling with inflation and uncertainty.
Why Investors Should Watch the Gold Rate Dubai Closely
With gold price today reaching record levels, financial advisors suggest diversifying portfolios with modest gold exposure. Dubai, long known as the “City of Gold,” continues to play a central role in global bullion trading and retail investment.
As demand rises across Asia and the Middle East, the gold rate Dubai could serve as a key barometer for global sentiment and investor confidence heading into 2026.
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