Dubai's gold market witnessed an unprecedented 70% price surge throughout 2025, reshaping investment patterns and retail strategies in the region. The sustained rally has transformed the precious metal into what analysts now describe as a 'strategic necessity' for diversified portfolios.
Financial experts attribute last year's dramatic increase to multiple factors including geopolitical tensions in Eastern Europe, inflationary pressures across global markets, and shifting currency valuations. This surge has particularly resonated with Asian investors, who now account for 43% of Dubai's physical gold transactions according to local exchange data.
Retailers have responded innovatively to maintain accessibility, introducing lighter-weight products and fractional ownership schemes. 'We're seeing strong demand for 1-gram gold bars and jewelry with lower karat purity,' noted Ahmed Al-Mansoori, a veteran Dubai bullion trader.
Looking ahead to 2026, market watchers predict continued interest as central banks maintain aggressive gold acquisition strategies. However, some analysts caution that current prices may test resistance levels established during the 2020 commodity boom.
