A significant number of UAE residents and investors are leveraging unprecedented gold and silver valuations to achieve key financial objectives, including property acquisition and debt settlement. This strategic movement follows a dramatic surge in precious metal prices, which recently reached historic peaks before experiencing a notable correction.
In Dubai, 24-karat gold achieved an all-time high of Dh666 per gram on January 29th, 2026, creating optimal selling conditions. However, prices subsequently declined by Dh76.5 per gram over the weekend, settling at Dh589.5 per gram. Corresponding decreases affected other variants, with 22K, 21K, 18K and 14K gold trading at Dh545.75, Dh523.25, Dh448.5 and Dh349.75 per gram respectively. Globally, spot gold prices retreated to $4,893.2 per ounce, representing an 8.14% decrease from the record $5,500 peak observed earlier. Market analysts attribute this adjustment to dollar strengthening following the appointment of Kevin Warsh as Federal Reserve Chair.
The price volatility triggered substantial selling activity across UAE markets. Dubai’s Gold Souk witnessed extensive queues of sellers during Thursday and Friday as residents sought to capitalize on the favorable rates.
Shehzadi Rehman, a 29-year Dubai resident and interior designer, reported generating a 25% profit from selling older gold jewelry. ‘Many are liquidating unworn gifted jewelry to invest in alternative avenues,’ she explained. ‘One acquaintance utilized proceeds for a property down payment and foreign investment.’ Rehman noted this represents an optimal opportunity for credit card debt elimination through asset liquidation.
This trend intersects with Dubai’s robust real estate market, which has delivered consistent double-digit returns over five years despite recent stabilization. The sustained property appreciation, coupled with escalating rental costs, has motivated numerous long-term tenants to transition toward ownership.
Investor Mayank Dudeja disclosed divesting 35% of his silver holdings at $94 per ounce during the rally, characterizing market behavior as influenced by ‘FOMO-driven peer pressure.’ He cautioned that social media guidance contributed to panic selling, though most investors retained substantial portions of their precious metal portfolios. Market expectations remain optimistic regarding silver potentially surpassing $100 again in the near term, despite anticipated sideways trading in coming months.