Gold prices in UAE surged on the first trading day of 2025, signaling a promising year for the precious metal market.
According to Dubai Jewellery Group data, 24-carat gold increased by Dh1.75, trading at Dh318.0 per gram on Wednesday morning. Similarly, 22-carat gold climbed by Dh1.5, reaching Dh294.5 per gram. Furthermore, 21-carat and 18-carat gold also saw gains, trading at Dh285.0 and Dh244.5 per gram, respectively.
On the global stage, spot gold closed at $2,624.49 per ounce on the last trading day of 2024. Although markets were closed on New Year’s Day, last year’s 27% growth in gold prices set the tone for 2025. Notably, gold reached a record high of $2,790 per ounce in 2024 due to several key factors.
US impact on Gold Prices in UAE
First, US interest rate cuts played a significant role in boosting gold’s appeal as an investment. Additionally, geopolitical tensions, particularly in the Middle East, further fueled demand for the safe-haven asset. Moreover, central banks increased their gold purchases, providing additional support to rising prices.
Looking ahead, analysts predict that gold prices will continue their upward momentum throughout 2025, potentially reaching $3,000 per ounce. Several factors contribute to this optimistic outlook. For instance, ongoing geopolitical instability in various regions is expected to sustain strong demand for gold.
Moreover, central banks are anticipated to maintain their aggressive gold-buying strategies, further bolstering the market. At the same time, concerns over the US economy, including rising debt levels and a growing deficit, are driving investors toward gold as a stable asset.
With such compelling factors in play, the yellow metal remains a preferred choice for investors seeking safety and stability. Consequently, traders and investors are closely monitoring market trends to capitalize on opportunities.
As 2025 unfolds, gold’s performance will depend on economic policies, geopolitical events, and central bank decisions. Ultimately, the precious metal is poised to maintain its strong position in global markets, providing confidence to investors worldwide.
