Gold prices in Dubai increased significantly at the beginning of the year, thus the prices are continuing their positive trend for the precious metal. The Dubai Jewellery Group’s price data indicates that 24K Gold increased by Dh1 to now cost Dh319 per gram. While 22K Gold also registered gains, rising by Dh0.75 to open at Dh295.25 per gram. Other gold variants, including 21K and 18K, were priced at Dh285.75 and Dh245 per gram, respectively, across stores in the emirate.
The increase in prices in Dubai is actually due to the international move of gold prices. At 9:05 am UAE time, spot gold traded at $2,633.97 per ounce, reflecting a 0.36% increase. Gold already performed really good this time in 2024, resulting in a whopping 27% rise – his highest annual increase since 2010. The remarkable appreciation of gold prices can be attributed to several factors, namely the general economic uncertainty and following on, the geopolitical tensions still going on.
Traders also would be looking out for many developments to signal their impact on the global economy and subsequently on gold prices in 2025. Amongst these developments are the decisions that are still to come from the Federal Reserve of the United States regarding interest cuts and policies to be taken by the incoming US president Donald Trump regarding tariffs on other nations. Mostly, according to the expectations of analysts, the Federal Reserve would take a cautiously “wait-and-see” stance in terms of interest cuts for this year and this may support another wave in demand for gold as a haven.
Traders look forward to the release of key economic data such as the initial US jobless claims and US jobs openings, which could further provide insight into the economy and guide future gold prices.
However, analysts seem majorly very positive on what gold would look like in 2025. The combination of reduced interest rates, global geopolitical instability, and internal arguments about tariff trade would continue to burnish the luster of this precious metal. Thus, gold remains an attractive option in uncertain times.
