Gold continues to glitter for investors and weigh heavily on buyers in the UAE, as prices touch yet another all-time high. After briefly stabilizing in September, the precious metal surged again to $4,010 an ounce on Tuesday, marking the 40th record-breaking milestone of 2025. Just last month, gold traded at $3,825, underscoring its relentless upward trajectory.
In the UAE, the rally pushed retail rates to Dh483 per gram for 24-karat gold on Wednesday, leaving the symbolic Dh500 mark within sight. The popular 22-karat variety reached Dh447 per gram, following the same bullish momentum seen across international markets. Jewellers say buyers are adapting by choosing lighter ornaments and smaller investment bars, maintaining steady demand despite rising costs.
According to the World Gold Council, the latest rally is being fuelled by record inflows into gold-backed exchange-traded funds, a softer US dollar, and persistent market uncertainty. Global gold ETFs saw inflows of $17.3 billion in September alone, the highest ever recorded, led by strong investor participation from North America and Europe, with Asian markets quickly following suit.
Despite its steep climb, analysts suggest gold remains “under-owned,” meaning there is still room for institutional and central-bank accumulation. Many expect further buying if global equity markets enter turbulence this quarter. Historically, October has been volatile for stocks, often prompting investors to move toward gold as a hedge against instability.
Even short-lived corrections have failed to shake confidence. The brief dip on September 30 was immediately met with strong buying interest, confirming that investors still view gold as a defensive asset amid geopolitical and economic uncertainty. “Any retracement has become an opportunity rather than a setback,” one Dubai-based analyst noted.
For UAE consumers, however, the situation offers little relief. Local jewellers across Dubai’s Gold Souk report brisk activity in coins, chains, and bangles, but most buyers are sticking to modest purchases. Industry insiders say the traditional wedding-season demand remains stable, though large transactions have slowed as customers wait for prices to settle, a scenario that shows no immediate sign of unfolding.
Unless global tensions ease or the US dollar stages a sharp recovery, experts expect gold to stay elevated through the final quarter of 2025. For now, the precious metal’s ascent seems unstoppable, its shine brighter than ever in both global markets and the heart of Dubai’s bustling jewellery trade.
