Today's Edition
BATOOL GHAITH (ABU DHABI)
In a year marked by one of the most dramatic rallies in the gold market in decades, the Central Bank of the UAE (CBUAE) reported that its official gold reserves surpassed Dh30 billion for the first time.
By the end of August 2025, the value of the nation’s gold holdings reached Dh30.329 billion, up from Dh22.981 billion at the end of December 2024, representing an increase of roughly 32% in just eight months. This surge builds on steady growth over recent years. By the end of Q3 2024, CBUAE gold reserves had already exceeded Dh23.185 billion, up from around Dh18.147 billion at the end of 2023, marking a near 28% increase that year.
At the same time, the global gold market delivered one of its most remarkable performances. World gold prices recorded historic highs throughout 2025, driven by geopolitical uncertainty, expectations of US interest rate cuts, central bank demand, and safe-haven inflows. International bullion benchmarks ended the year up around 67–70%, with spot prices breaching $4,000 per ounce for the first time ever in October and crossing $4,470 per ounce as of late December—a level not seen in more than four decades.
In the UAE retail market, gold prices reflected global momentum. Early this year in January, the 24-karat gold price was approximately Dh318 per gram, and 22-karat was at Dh294. As gold prices soar today, 24K gold rose to Dh539, while the 22K reached Dh494, as local prices tracked global markets.
The impact of soaring gold prices on consumer behavior has been notable. Despite the high prices, people are still buying and investing in gold. Mohammed Al Harazi, a gold retailer in Madinat Zayed Gold Centre in Abu Dhabi, said that people are turning to gold as a “safe haven” now more than ever.
“The high prices actually pushed people to invest and buy more gold, as they realised now the value of it, and there are lots of people who started investing in gold for the first time this year too,” Al Harazi told Aletihad. He indicated that people of all ages are more aware of the value of investing in gold: “It used to be something that people of older age did, but now we have plenty of young people in their early 20s buying and investing in gold.”
According to Al Harazi, gold jewellery is not as much in demand as gold coins or ounces. “Gold jewellery is always popular, but with the high prices, people would rather buy to invest rather than just having jewellery,” he said. He also noted that many people sell their old pieces, either to upgrade or to make more cash.
For Sama Tawil, who started investing in gold in 2023, the gold coins she bought two years ago have now tripled in value. “I was shocked to see the prices this year, and I felt very happy that I bought some gold coins when the prices were cheaper,” Tawil told Aletihad. When asked if she bought any gold this year, she said, “I could not buy the same amount I used to buy for sure, as they increased in price immensely, but I did buy a couple of gold coins.”
Analysts attribute the extraordinary gold performance to a rare confluence of factors: elevated geopolitical tensions, expectations of lower interest rates, robust central bank buying, and a softer US dollar. These forces have reinforced gold’s traditional status as a safe-haven asset in times of uncertainty, drawing increased demand from both institutional and retail buyers.
As 2026 approaches, gold remains on many investors’ radars, not just as a hedge against volatility, but as a core portfolio anchor in an increasingly unpredictable global environment. Economic analyst Hosam Ayesh described 2025 as one of the most unusual and volatile years economically, marked by global uncertainty and a transitional phase between old financial systems and emerging new ones.
He explained that the traditional economic framework, built on established financial, monetary, and data norms, is being challenged by rapid technological developments in artificial intelligence and digital data. “This turbulent transition, between a known economic order and a new one that is not yet fully defined, helped drive gold’s performance as both a safe-haven asset and an investment vehicle,” Ayesh told Aletihad.
According to Ayesh, gold’s appeal in 2025 stemmed not only from traditional safe-haven demand during times of inflation and slower economic performance, but also from changes in monetary policy. “Confidence in US government policy and ongoing ambiguity about fiscal measures also contributed to heightened gold demand,” he explained. Ayesh also highlighted the impact of increased liquidity flowing into gold-backed investment funds, as investors sought secure assets amid global uncertainty.
Looking ahead to 2026, Ayesh said optimistic forecasts by gold traders, anticipating prices towards $5,000 per ounce, are buoyed by continued economic challenges, including pessimism around US and global economic performance.
For economic expert Wajdi Makhamreh, 2025 was not only a good year for gold, but it was also a definitive breakout year that fundamentally changed how the market views the metal. “This was gold's strongest annual performance in over 45 years, since the late 1970s. The rally was driven by a perfect storm: escalating trade tensions (tariffs), massive and persistent buying by central banks (particularly in emerging markets), and a decisive return of Western investors into Gold ETFs,” Makhamreh told Aletihad.
