Gold prices at a historic high: Its effects on UAE buyers and investors at present

In a remarkable turn of events, gold prices have reached unprecedented heights in the United Arab Emirates and across the globe. This surge is attributed to a confluence of factors, including a weak US dollar, global tensions, rate cut hopes, ETF inflows, and increased demand.

The historical high price of gold in the UAE was recorded in September 2025, surpassing $3,674 per ounce and peaking at $3,685. This astronomical rise was primarily driven by global economic turbulence, high inflation rates, a weak US dollar, and escalating geopolitical tensions that made gold an attractive safe haven asset.

The World Gold Council reported a 31% surge in gold prices so far in 2025. This trend is evident in India, where gold prices have increased by 34%, with prices reaching ₹101,967 per 10 grams on the MCX. Interestingly, gold demand in India has outpaced that of China, where investors have instead focused on soaring stock markets.

The UAE, as a global hub for gold jewelry and bullion, typically experiences increased buying when gold prices rise. Local demand, particularly during festivals and wedding seasons, could push retail gold prices higher. However, higher gold prices may pinch shoppers, but they also reinforce gold's role as a long-term store of value for many residents.

Experts predict that a gold price of $5,000 could be within reach now. For long-term savers in the UAE, dips in gold prices can present opportunities for purchases. The global spot price of gold hit a record high of $3,578.50 at the start of September 2025, and later settled at $3,586 per ounce.

Global investors poured $5.5 billion into gold-backed funds in August 2025. Prices in the UAE gold market may experience volatility as decisions from the Fed approach. The latest UAE gold prices, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, and Kuwait, can be found here. Gold prices in these regions may continue to rise this week.

In conclusion, the surge in gold prices is a reflection of global economic uncertainty and geopolitical tensions. For residents in the UAE and other regions, buying gold now can secure assets against inflation and market uncertainty. However, it's essential to keep a close eye on market trends and make informed decisions.