Dubai Gold Prices Continue to Soar as Global Markets Push Toward $4,000 Milestone

Dubai Gold Prices Continue to Soar as Global Markets Push Toward $4,000 Milestone

24-Carat Gold in Dubai Hits AED474.5 Amid Rising Global Demand

Gold prices are setting new records in 2025, driven by strong investor appetite, central bank purchases, and persistent geopolitical uncertainty. In Dubai, the price of 24-carat gold climbed by AED6 to AED474.50 per gram, marking another strong day for the precious metal.

Other categories also recorded gains:

• 22-carat gold rose by AED5.75 to AED439.50

• 21-carat gold increased by AED5.50 to AED421.25

• 18-carat gold edged up AED4.75 to AED361.25

At the global level, spot gold traded around $3,935 per ounce, up 1.22%, while U.S. gold futures for December delivery advanced to $3,959.70. The rally continues to strengthen expectations that gold could soon cross the historic $4,000 mark, possibly by early 2026.

Global Gold Prices Strengthen as Investors Seek Safety

The surge in gold prices reflects a growing flight to safety amid volatile financial markets and global conflicts. Analysts note that 2025 has become one of the strongest years for gold since 1979, with the metal gaining more than 47% year-to-date.

Interestingly, gold’s resilience comes even as global interest rates remain high—conditions that typically limit demand for non-yielding assets. However, this year’s mix of inflation fears, geopolitical risks, and uncertain monetary policy signals has kept the metal in strong demand.

ETF Inflows and Central Bank Buying Fuel the Rally

Institutional demand is one of the key pillars behind the current gold boom. Central banks around the world continue to expand their gold reserves, viewing the metal as a hedge against both currency depreciation and political risk.

At the same time, exchange-traded funds (ETFs) backed by gold have seen record inflows, showing renewed investor confidence in the commodity. The ongoing weakness in the U.S. dollar has also magnified gold’s appeal to international buyers seeking portfolio diversification.

Analysts Raise Forecasts: $4,000 Within Reach

Leading financial institutions are increasingly optimistic about gold’s near-term outlook.

Analysts at El-Balad note that this momentum aligns with long-term trends showing a structural increase in gold demand. As global trade tensions persist and the risk of recession rises, investors are turning to gold for stability.

Key Drivers Behind Gold’s Record Surge

Several interconnected factors are pushing gold toward new highs:

1. Geopolitical Tensions: Ongoing conflicts and strained diplomatic relations have boosted safe-haven demand.

2. Monetary Policy Shifts: Expectations of central bank rate cuts are reducing the opportunity cost of holding gold.

3. Inflation Pressures: Persistent global inflation is driving investors toward assets that preserve value.

4. Market Uncertainty: Political interference in central banks and fiscal instability in major economies are adding to risk aversion.

While short-term corrections are possible—analysts predict brief pullbacks toward $3,760—the overall trend remains firmly bullish. Technical charts continue to show strong upward momentum, suggesting the rally could extend well into next year.

Regional Demand and Festive Season Boost

Beyond global market trends, regional factors are amplifying demand. In India, the upcoming Diwali 2025 celebrations are expected to fuel significant gold purchases. Prices there have already surpassed Rs1,18,000 per 10 grams on the MCX, with forecasts indicating a rise toward Rs1.22 lakh during the festive period.

This seasonal uptick, combined with macroeconomic drivers, reinforces optimism that gold’s rally has further room to run.

Outlook: Can Gold Maintain Its Momentum?

Despite the bullish outlook, analysts at El-Balad caution that several variables could influence gold’s path forward. A stronger U.S. dollar, faster global economic recovery, or sustained higher interest rates could slow the rally.

However, as long as market volatility, geopolitical instability, and inflation concerns persist, gold is expected to remain a cornerstone of investor portfolios worldwide.