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Thu, Jan 22, 2026 | Shaban 3, 1447 | Fajr 05:45 | DXB 
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UAE: Gold hits fresh record highs as prices jump over Dh10 in 24 hours
Increased geopolitical tension, trade disputes, and economic uncertainty have led to the flow of funds into precious metals, particularly gold to shoot up
[Editor's Note: Want to know the gold rate in Dubai? Click here]
After breaking new highs twice in a day, gold prices in the UAE have continued its upward trajectory. When markets opened on Tuesday (December 23), 24K gold stood at Dh540, a whopping increase of more than Dh10 from the Dh529.75 that it was on Monday morning.
The rates of 22K, 21K,18K, and 14K stood at Dh500, Dh479.50, Dh411 and Dh320.50. Spot prices stood at $4,475.44 at 10:30am, up almost 1 percent from Monday. Meanwhile silver also surpassed the historic highs it hit yesterday and stood at $69.43.
According to Vijay Valecha, chief investment officer at Century Financial, this is “one of the strongest” rally the yellow metal has had since the 1970s. “This is is reflective of forces that make gold both a safe haven, and an inflation hedge,” he said. “However, current global dynamics tilt more towards risk aversion, making the safe haven characteristic outshine the inflation hedge one.”
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He explained that increased geopolitical tension, trade disputes, and economic uncertainty have led to the flow of funds into precious metals, particularly gold to shoot up.
Gold demand in the UAE
He pointed out that gold demand in the UAE looks very different from most countries, mainly because of its role as a global trading hub. He said that although people are continuing to buy the yellow metal, they are cautious. “Across the Middle East, total jewellery demand was 33.8 tonnes in Q3, with the UAE contributing roughly one-fifth of regional demand, second only to Saudi Arabia,” he said. “This slowdown is not unique, developed markets saw similar trends. For example, United States jewellery demand fell to 24.6 tonnes, one of its weakest third quarters on record.”
However, he pointed out that the bar and coin demand in the country stayed strong. “It was around 3.4 tonnes in Q3. While slightly lower year-on-year, this decline was far milder than in developed markets.
"In the US, bar and coin demand collapsed by more than 60 per cent, as many investors booked profits after the rally. Europe, on the other hand, saw renewed buying as investors rushed back into gold during price dips," he said.
He added that a large share of gold bought in Dubai is exported to South Asia, Africa, and neighbouring regions, making the country less about local buying and more about facilitating global gold flows. “In simple terms, the UAE behaves like a developed market in consumption, but like an emerging-market hub in importance, quietly central, highly liquid, and structurally resilient,” he said.
Nasreen Abdulla
Nasreen Abdulla is a Special Correspondent covering food, tech and human interest stories. When not challenged by deadlines, you’ll find her pulling off submissions on the jiu jitsu mats.
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