UAE Gold Prices Surge Four Times in One Week What to Expect in 2026

On Monday, 22 December 2025, Dubai’s gold souq saw a surge in visitors as shoppers rushed to stores, motivated by rising gold prices and strong investment demand

The gold market has sent shockwaves through the UAE and the global financial system. In the final weeks of 2025, gold prices in the UAE surged four times within a single week, setting new local records and capturing the attention of investors, consumers and market analysts. At the same time, silver prices jumped sharply, reinforcing the idea that precious metals are entering a new phase as the world looks ahead to 2026.

This sudden rise has raised an important question for buyers and investors alike. Is this simply a short term spike, or are we witnessing a deeper structural shift in the gold market?

Recent Gold and Silver Price Movements in the UAE

By late December 2025, the price of 24 karat gold in the UAE climbed to approximately AED 543 per gram. Other gold categories including 22 karat, 21 karat, 18 karat and 14 karat all followed the same upward trend. These increases occurred multiple times within a single week, a rare and notable development for the local market.

On the global stage, spot gold prices remained above 4500 dollars per ounce while silver surged past 74 dollars per ounce. Over the past month alone, gold recorded gains of more than 7 percent, while silver surged by over 30 percent. This shows that the rally is not limited to one metal or one region, but reflects a broader shift in global demand for precious metals.

What Is Driving the Gold Price Surge

One of the biggest drivers behind the gold price surge is aggressive buying by central banks. Central banks across the world, particularly in emerging economies, have been rapidly increasing their gold reserves. In a single quarter, nearly one thousand tonnes of gold were added to official reserves as countries sought to reduce reliance on the US dollar and strengthen their financial security.

Another key factor is the growing demand from institutional investors and exchange traded funds. As stock markets fluctuate and bond yields become less attractive, investors are turning to gold as a safe store of value. This steady inflow of capital into gold backed products has added strong upward pressure on prices.

The weakening US dollar has also played a significant role. Expectations of interest rate cuts by the US Federal Reserve in 2026 have reduced the appeal of dollar denominated assets. Since gold is priced in US dollars globally, a weaker dollar makes gold more affordable for international buyers, further boosting demand.

Geopolitical uncertainty continues to support gold prices as well. Ongoing conflicts and tensions in various parts of the world have increased investor appetite for safe haven assets. Historically, gold performs well during periods of global instability, and the current environment is no exception.

Inflation and economic uncertainty also remain key drivers. Despite central bank efforts to control inflation, many economies are still dealing with high debt levels, rising costs and uncertain growth prospects. Gold is widely viewed as a hedge against inflation, making it an attractive option for long term capital preservation.

Is This a Short Term Spike or a Long Term Shift

Market experts suggest that the recent rally may reflect a deeper structural change rather than a temporary spike. According to financial analysts, gold is increasingly being treated as a core reserve asset rather than simply a hedge. Central banks and institutional investors are reshaping their portfolios to include more gold as a long term strategic holding.

That said, volatility should still be expected. After such rapid gains, short term corrections or periods of consolidation are likely. Investors should be prepared for price fluctuations even if the long term outlook remains positive.

Gold Price Outlook for 2026

Looking ahead to 2026, many analysts remain bullish on gold. Forecasts suggest that gold could continue rising toward the 4500 to 5000 dollar per ounce range if current economic and geopolitical conditions persist. Continued central bank demand, potential interest rate cuts and ongoing global uncertainty all support this outlook.

Some financial institutions predict that gold prices could average above 4600 dollars per ounce throughout 2026, particularly if inflation proves more persistent than expected or if geopolitical risks escalate further.

However, not all forecasts are unanimously optimistic. Some analysts warn that a stronger US dollar, higher real interest rates or improved global economic stability could limit further gains. In such scenarios, gold prices may move sideways or experience temporary pullbacks before resuming a longer term trend.

What This Means for UAE Buyers and Investors

For UAE consumers, higher gold prices mean increased costs for jewellery and physical gold purchases. Buyers may need to plan purchases carefully or wait for temporary dips in prices.

For investors, gold still offers significant value as a diversification tool. It can help protect portfolios against market volatility, inflation and currency risk. Gold backed investment products, physical bullion and exposure through regulated platforms remain popular options in the UAE.

Silver has also emerged as an attractive alternative, with strong i ndustrial demand and limited supply contributing to its sharp price increase. Investors looking beyond gold may find additional opportunities within the broader precious metals market.

Final Thoughts

The surge in UAE gold prices during late 2025 was one of the most dramatic moves seen in recent years. As the world approaches 2026, gold is no longer viewed simply as a defensive asset. It has become a strategic component of global financial systems and investment portfolios.

While short term corrections are always possible, the broader forces supporting gold remain firmly in place. Central bank accumulation, economic uncertainty and geopolitical risk continue to shape the market. For investors and buyers in the UAE, staying informed and adopting a long term perspective will be key to navigating the evolving gold landscape.

Source: Khaleej Times

FAQ Section

Frequently Asked Questions

Why did gold prices surge in the UAE this week?

Gold prices surged due to strong central bank buying, rising global uncertainty, increased demand from investors and expectations of interest rate cuts by major central banks.

Will gold prices continue rising in 2026?

Many analysts expect gold prices to remain strong in 2026, with some forecasts suggesting prices could reach between 4500 and 5000 dollars per ounce depending on economic and geopolitical conditions.

Is it a good time to buy gold in the UAE?

This depends on individual financial goals. Long term investors may see value in gold as a hedge, while short term buyers may want to wait for price corrections.

Why is silver rising faster than gold?

Silver is benefiting from both investment demand and industrial usage, especially in renewable energy and electronics, which has driven prices higher.