Gold Prices Soar in Dubai, Records Set After 60% Jump in 2025

Gold saw an extraordinary surge in 2025, not only in India but also in global markets. Dubai, a key gold trading hub, witnessed record-breaking prices for the precious metal last year.

Dubai Gold Price Surge
At the start of 2025, 24-carat gold in Dubai was priced at 318 AED (≈ ₹8,800) per gram. By 31 December 2025, it had surged to 520 AED (≈ ₹12,750) per gram, marking a remarkable 63.5% increase. This translates to ₹1.27 lakh per 10 grams. Similarly, 22-carat gold rose from 294.5 AED to 481.5 AED per gram, a 63.5% increase, while 21-carat gold gained roughly 176.75 AED per gram over the year.

14-Carat Gold Remains Stable
In contrast, 14-carat gold, launched in the UAE on 29 November 2025, saw only a modest 2.3% increase during the year. Its relatively low jump is attributed to its lighter weight and daily wear suitability, making it more affordable and accessible for consumers.

Reasons Behind the Price Rally
Several economic factors contributed to gold’s price surge in 2025:

• Global uncertainty and geopolitical tensions drove investors and central banks to view gold as a safe-haven asset.
• The rally in gold prices was the largest since the late 1970s, with global prices rising nearly 70%.
• US Federal Reserve rate cuts made gold more attractive compared to bonds and other financial instruments, boosting demand further.

Impact on Indian Market
India also witnessed substantial growth in gold prices. 24-carat gold, which started 2025 at around ₹78,000–₹80,000 per 10 grams, rose to over ₹1.40 lakh per 10 grams by December, setting new records. Factors such as the weakening rupee, continuous investments in Gold ETFs, and high demand during festivals and wedding seasons further fueled the price rally.

Gold’s historic surge in 2025 underscores its continued importance as a global and domestic safe-haven investment, highlighting the impact of geopolitical tensions, central bank policies, and market sentiment on precious metal markets.