The United Arab Emirates has witnessed an extraordinary bull run in gold markets throughout 2025, with prices surging more than 60 percent in a single year and delivering nearly doubled returns for investors who entered the market earlier. This remarkable performance has transformed gold from a traditional safe-haven asset into one of the year’s top-performing investments.
Abu Dhabi resident Zeba Mohammed exemplifies this trend, having purchased 10 grams of gold jewelry in December 2024 for approximately Dh3,000. Just twelve months later, her investment has appreciated to nearly Dh5,000 in value. ‘I keep advising my friends and family to do the same,’ Mohammed stated, highlighting gold’s growing popularity as both an accessible investment vehicle and meaningful gift.
According to Ole Hansen, Head of Commodity Strategy at Saxo Bank, the foundations for this rally were established years ago, reflecting ‘a profound shift in the macro, geopolitical, and institutional backdrop for gold.’ The numbers speak volumes: 24K gold opened the year at Dh318.0 per gram before climbing to unprecedented heights of Dh540.0 per gram by year’s end.
The soaring prices have democratized gold investment, attracting first-time and small-scale investors. UAE expat Sana Ashraf began her investment journey with gold and silver ETFs earlier this year, already witnessing a 30 percent portfolio growth within months. Similarly, Dubai resident Ashraf Khan participates in a jewelry shop scheme that allows him to systematically invest Dh2,000 annually while acquiring pieces without making charges.
Despite the overwhelming optimism, analysts caution that 2026 may bring volatility. Hansen notes that January’s commodity index rebalancing could trigger significant selling in futures markets, potentially creating short-term price disruptions. Additionally, questions remain about the sustainability of central bank demand as rising prices automatically increase the value of existing reserves.
Looking ahead, scenarios including sticky inflation combined with rate cuts could create stagflation-like conditions historically favorable for gold. Some analysts maintain long-term targets as high as $5,000 per ounce by late 2026, suggesting the golden run might have further to go despite anticipated bumps along the way.