The UAE gold market is demonstrating remarkable resilience as prices reach unprecedented levels, with consumer purchasing patterns undergoing significant transformation rather than declining. On Monday, December 22, 2025, 24K gold opened at Dh539.75 per gram, continuing its record-breaking trajectory after previously hitting Dh525.25 on October 21 before experiencing a temporary correction and subsequent rebound.
The price surge has extended across various karat weights, with 22K, 21K, 18K, and 14K gold reaching Dh492.25, Dh472, Dh404.50, and Dh315.50 respectively. International spot prices mirrored this trend, standing at $4,422 by 6 PM with a 1.8 percent increase from Sunday. Silver similarly achieved historic highs, climbing 2.7 percent to reach $69.23 earlier in the day before settling at $68.82.
Market experts report that while gold prices have reached record levels, consumer demand has not diminished but instead evolved strategically. Ahmed Abdeltawab, CEO and co-founder of fractional gold purchase app O Gold, observed: ‘High prices haven’t stopped demand—they’ve fundamentally altered purchasing behaviors. We’re witnessing a pronounced shift toward fractional acquisitions and systematic accumulation strategies rather than traditional lump-sum investments.’
Retail jewelers confirm this behavioral adaptation. Amina Mohamad Ali, director of MFar Jewellers, noted: ‘Customers are increasingly opting for lighter pieces, and we’ve observed corresponding growth in diamond jewelry demand. The anticipation of continued price increases has actually motivated rather than deterred purchasing decisions.’
The current price environment is attracting new demographic segments to the gold market. According to Abdeltawab, ‘Record highs are particularly appealing to younger, first-time investors who typically begin with modest amounts. Enhanced financial education, improved market accessibility, and fractional ownership opportunities are primary factors driving this new investor cohort.’
Ahmad Assiri, Research Strategist at Pepperstone, attributes the price appreciation to multiple converging factors rather than a single catalyst. ‘Global macroeconomic uncertainty surrounding growth prospects, geopolitical tensions, and persistent fiscal challenges have amplified gold’s appeal for portfolio management,’ Assiri explained. ‘Central bank demand has emerged as a dominant market anchor, surpassing the traditional influence of rate expectations. These collective factors have positioned gold as this year’s highest-performing major asset.’
Despite expectations among some analysts that gold wouldn’t revisit record highs in 2025, the current rally demonstrates strong underlying fundamentals. Assiri added: ‘While volatility has characterized this year’s market, the overarching trend remains constructive. The sustained position above previous breakout levels indicates robust underlying demand, with investors increasingly considering gold an essential portfolio component rather than a speculative short-term play.’