Dubai: Gold prices in Dubai edged higher in early 2026 trading, offering buyers a firmer start to the year as global markets reopened with cautious optimism and investors weighed expectations of interest-rate cuts alongside renewed risk appetite.
By 7:50 am on Friday, the price of 24-karat gold in Dubai had risen to Dh524 per gram, up from Dh520.25 a day earlier. The 22-karat variety also strengthened, climbing to Dh485.25 per gram from Dh481.75 earlier in the week, according to local pricing data.
The move mirrors gains in international markets, where precious metals advanced as trading resumed after the holiday period. Spot gold traded toward $4,350 an ounce, while silver rose more than 1%, extending momentum from a year that delivered the strongest annual performance for precious metals since 1979.
Bullion opens 2026 on firmer footing
Market participants said the early gains came despite thin liquidity and uneven trading conditions. Investors continue to price in the prospect of further US interest-rate cuts and a softer dollar in 2026, factors that typically support gold prices.
At the same time, analysts warned that near-term volatility remains possible. After a sharp rally last year, gold and silver now account for a larger share of major investment indices, potentially prompting passive funds to rebalance portfolios and trim exposure.
Such adjustments could create short-term pressure even as the broader outlook for bullion remains constructive, particularly if rate expectations continue to move in favour of lower borrowing costs.
Risk appetite returns to global markets
Beyond precious metals, risk sentiment improved across broader markets. Asian equities rose around 0.8%, led by technology and semiconductor stocks, with a regional tech index touching a record high.
Gains were driven by continued enthusiasm around artificial intelligence-linked names, a theme that dominated markets through 2025. Futures tied to the Nasdaq 100 advanced 0.6%, outperforming broader US benchmarks, while cryptocurrencies also attracted fresh inflows.
The US dollar weakened, and Australian government bonds declined, reflecting shifting expectations around global monetary policy. Trading conditions remained patchy, with mainland Chinese markets closed and no cash trading in US Treasuries during Asian hours due to holidays.
Strong 2025 leaves room for caution
Global equities ended 2025 with their strongest annual performance since 2019, supported by solid earnings expectations and sustained optimism around AI-driven growth. The Nasdaq 100 gained 20% last year, marking its third straight annual advance, while major chipmakers delivered outsized returns.
However, the strength of the rally has sharpened concerns over valuations. Several Wall Street executives warned late last year that equity markets could face a correction exceeding 10% over the next year or two, citing stretched valuations in parts of the technology sector.
As 2026 begins, analysts say investors are becoming more selective, balancing optimism around growth themes with caution over seasonal patterns and elevated asset prices.
