UAE gold prices: How 2025 became defining year for yellow metal

After years of competing with equities, cryptocurrencies, and tightening monetary policy, gold made a powerful comeback in 2025—cementing its status as one of the best-performing major asset classes of the year. However, the journey was anything but smooth for the yellow metal. Almost like a suspense thriller, gold prices rose and dipped before presenting a befitting climax.

Prices surged to record highs in October, then dropped sharply in one of the biggest movements in over a decade, and by the end of the year, investors ranging from central banks to retail buyers flocked back to the yellow metal.

According to market experts, a rare convergence of economic uncertainty, geopolitical tension, and shifting confidence in traditional financial systems made 2025 a defining year for gold. “Gold was reacting to mixed signals all year—rates up, then cuts, inflation cooling but not gone, plus global tension,” said Ahmed Abdeltawab, CEO and co-founder of the O Gold app. “2025 forced markets to reprice risk and trust in money, and gold sat right at the center of that.

Gold prices rallied over the course of the year, reaching historic highs near $4,380 per ounce, according to industry estimates. In the UAE, prices reached record highs of Dh525.25 per gram for 24K on October 21 before falling sharply. Some analysts described it as one of the most significant movements in the last 12 years. Over the last week, prices climbed again and look poised to finish the year strong.

Michael Brown, senior research strategist at Pepperstone, described it as gold’s strongest performance in decades. “The best year since 1979,” Brown said. “Nothing else really needs to be said.”

The perfect storm

According to Nishin Thaslim, chairman of Morickap Group of Companies, 2025 was a defining year for gold. “Due to a perfect storm of global economic and geopolitical instability, prices were driven to record highs, reaching around $4,380 per ounce for the first time in history,” he said. “Gold became the top-performing major asset class, achieving returns exceeding 60 percent.”

He added that both institutional and retail buyers view gold as a crucial safe-haven asset.

Michael added that despite its volatility, even bullion rallied around 65 percent since the start of 2025. “The fundamental bull case behind the dollar has been one largely supported by physical demand, not only from reserve allocators seeking increased diversification and a dash out of the dollar, but also from retail traders, as ETF holdings have headed skywards,” he explained.

Abdeltawab described gold as the “grown-up asset” of 2025. “When equities or crypto got shaky, investors came back to gold for stability—especially institutions and central banks,” he said.

Gold vs Bitcoin

Despite frequent comparisons between gold and cryptocurrencies, experts say the two assets played very different roles in 2025.

“Gold never really lost its appeal as a store of value and certainly isn't competing with digital assets in any way,” said Michael. “Central banks aren't going to be adding bitcoin to their reserves—one must also consider the considerably higher implied/realized volume associated with digital assets that is typically not seen when it comes to gold and other precious metals for that matter.”

Nishin described gold as the "old anchor that provides stability and acts as a crisis hedge” while Bitcoin is the “new wave asset that offers high growth potential, portfolio diversification benefits, and a hedge against potential monetary manipulation in the digital age.”

Ahmed agreed. “Bitcoin is still high-risk and high-volatility, while gold has re-established itself as the reliable store of value when things get uncertain,” he said.

Gold predictions in 2026

Most analysts expect gold’s momentum to continue into 2026, even if gains are moderate after an exceptional year.

Gold will stay strong in 2026, said Ahmed. “Maybe not the same speed as 2025, but the fundamentals—rate cuts, debt, geopolitics—are still there.”

Michael added that the path of least resistance is likely to continue to lead to the upside for the foreseeable future. "Central bank reserve demand is unlikely to substantially abate any time soon, underpinning the broader bull case," he said. "Participants, hence, are likely to continue to view dips as buying opportunities, particularly as long as spot remains north of the $4,000/oz mark."

According to Nishin, the outlook is broadly bullish, with many forecasts clustering around $4,500–$5,000 per ounce.

This year will be remembered as the year gold reasserted its relevance in a rapidly evolving financial world. “2025 was the year gold reminded everyone why it still matters,” Ahmed said.