Gold has long been considered a safe-haven asset, cherished for its ability to retain value in uncertain times. As we move into 2025, there is a growing consensus that global gold prices will experience steady growth. This increase is attributed to a combination of economic, geopolitical, and market factors that are expected to influence both global and regional trends, particularly in the UAE. While the exact price points remain unpredictable, many analysts are confident in the upward trajectory of gold prices in the near future.

Global gold price trends in 2025

Global gold prices are expected to rise in 2025 due to factors like persistent inflation, lower interest rates, and ongoing geopolitical tensions. As inflation continues, gold remains a preferred hedge against currency devaluation, attracting more investors. Central banks are likely to adjust interest rates, which could further boost gold demand, while trade uncertainties and geopolitical conflicts are expected to increase the demand for gold as a safe asset. Rising demand from major consumers like India and China, along with supply constraints, will also contribute to this upward trend.

Gold price trends in the UAE

The UAE has always been a key player in the global gold market, with its tax-free gold market and high consumer demand for jewellery. As global gold prices rise, experts predict that the UAE market will follow a similar trend, driven by several key factors. These factors will likely influence the 24K gold price in Dubai and the Gold rate in Dubai, leading to potential changes in the market. Meanwhile, investors seeking high-quality gold jewellery Dubai as an asset will likely remain active in the market.

1. Increased consumer demand

Gold is deeply embedded in the cultural fabric of the UAE, particularly in Dubai, where gold jewellery remains in high demand. The steady increase in global gold prices is expected to translate into higher prices in the UAE market, prompting consumers to make early purchases before prices rise further. As jewellery is considered both an investment and a tradition, many buyers are likely to act sooner to lock in better rates.

2. Tourism and expo-driven demand

Dubai continues to attract tourists from around the world, many of whom visit specifically to buy gold. As tourism grows and international events continue to bring in visitors, the demand for gold jewellery is expected to rise. This increased demand will likely contribute to higher prices in the UAE, as more buyers look to take advantage of the region’s competitive gold offerings.

3. Currency fluctuations and market impact

Since gold is traded in U.S. dollars, fluctuations in the value of the dirham could also affect local gold prices. A weaker U.S. dollar, combined with other global economic shifts, could lead to an increase in gold prices in the UAE. This makes it an ideal time for investors and buyers to keep a close watch on the currency markets, as any changes could impact on the cost of gold.

4. VAT and regulatory changes

The UAE’s 5% VAT on gold jewellery is relatively low compared to many other regions. However, any changes in tax policies or new regulations affecting gold imports or exports could have an effect on pricing. Consumers should remain aware of any changes that could impact on the final cost of their gold purchases.

With gold prices expected to rise in 2025, both globally and within the UAE, now is an excellent time for buyers and investors to consider securing their gold purchases. As inflationary pressures, interest rate adjustments, and geopolitical instability continue to influence the market, gold’s position as a stable and reliable asset is set to strengthen. By understanding the key factors driving these price increases, consumers and investors can make informed decisions to maximize their value before the market shifts further. For all your gold investment needs, consider visiting Arakkal Gold and Diamonds, a trusted luxury jewellery brand in the UAE.