The UAE gold market has experienced an unprecedented surge, marking its fourth record-breaking price increase within a single week. As markets opened on Friday, December 26, 2025, 24K gold reached Dh543.25 per gram, representing a significant jump from Christmas Day’s slight dip to Dh539.75. This remarkable performance extends across various karat weights, with 22K, 21K, 18K, and 14K trading at Dh503, Dh482.25, Dh413.50, and Dh322.50 respectively. Simultaneously, silver prices skyrocketed to unprecedented levels, reaching $74.38 per ounce while spot gold stood at $4,514 by afternoon trading.
The monthly performance metrics reveal even more dramatic growth, with gold appreciating over 7% and silver experiencing an extraordinary 34% surge. According to financial experts, 2025 is positioned to become gold’s strongest annual performance since 1979, driven by what analysts describe as a ‘perfect storm’ of economic factors.
Bas Koojiman, CEO of DHF Capital, identifies multiple converging drivers behind this historic rally: relentless central bank acquisitions exceeding 980 tonnes in Q3 alone, massive ETF inflows as investors seek safety, a weakening US dollar amid Federal Reserve rate cut expectations, and escalating geopolitical tensions worldwide. The US-Venezuela blockades alongside ongoing conflicts in Ukraine and the Middle East have further contributed to this economic landscape.
Critically, experts emphasize this represents a structural market shift rather than a temporary cyclical rally. Emerging markets are aggressively building gold holdings as part of de-dollarization strategies, with gold’s share in global assets climbing toward 3-4%. This re-rating of gold as a strategic necessity appears long-term rather than temporary, though analysts anticipate potential corrections following 2025’s explosive gains.
The outlook for 2026 remains bullish, with projections suggesting gold could average between $4,500 to $5,000 per ounce. Sustaining these levels will require continued lower interest rates, a softer dollar, persistent geopolitical risks, and robust institutional demand. Market analysts interpret gold’s dramatic rise as a warning signal indicating widespread investor concern about geopolitical instability, trade tensions, record debt levels, potential inflationary pressures, and questions regarding the dollar’s continuing dominance in global markets.