Gold has long been a symbol of wealth, security, and financial stability. In the United Arab Emirates (UAE), gold plays a crucial role in both the economy and the culture. Whether it’s for investment, jewelry, or trade, gold is a highly sought-after commodity. Today, the UAE gold market continues to thrive, attracting investors and traders from around the world.
Current Gold Prices in the UAE
As of March 17, 2025, the price of 24-carat gold in the UAE stands at AED 351.50 per gram. This translates to approximately AED 10,950 per troy ounce (1 troy ounce = 31.1035 grams). Gold prices in the UAE are influenced by global trends, demand and supply dynamics, central bank policies, and geopolitical factors.
Recent Gold Price Trends
In the first quarter of 2025, gold prices in the UAE have seen a steady rise.
- On January 1, 2025, the price of gold per ounce was AED 9,637.63.
- By February 24, 2025, the price had climbed to AED 10,840 per ounce.
- Today, March 17, the price stands at AED 10,950 per ounce.
This reflects an 11.14% increase in gold prices within the past few months. The bullish momentum in the gold market suggests continued upward movement in the coming months.
Why is Gold Price Increasing?
Several key factors are contributing to the rise in gold prices:
- Global Economic Uncertainty
- Inflation concerns, economic slowdowns, and financial instability in major economies (such as the U.S. and Europe) are pushing investors towards gold as a safe-haven asset.
- Geopolitical Tensions
- Ongoing conflicts and geopolitical issues in various parts of the world, particularly in Eastern Europe and the Middle East, have increased demand for gold as a hedge against risk.
- Central Bank Buying
- Many central banks, particularly in China and India, are increasing their gold reserves. This strong demand from central banks is keeping prices elevated.
- Weakening US Dollar
- Since gold is priced in U.S. dollars, a weaker dollar makes gold more attractive to international buyers, driving up demand and prices.
- Interest Rate Expectations
- If the U.S. Federal Reserve and other major central banks start cutting interest rates, gold prices may continue to rise due to lower yields on bonds and savings.
Investing in Gold Bars in the UAE
The UAE, particularly Dubai, is known as the “City of Gold” due to its thriving gold trade. Investors looking to buy gold bars in the UAE have several options.
Gold Bar Sizes and Purity
Gold bars in the UAE are available in different sizes, ranging from 1 gram to 1 kilogram. The most common gold bars for investment are:
- 10 grams
- 50 grams
- 100 grams
- 250 grams
- 500 grams
- 1 kilogram
The standard purity of investment-grade gold bars in the UAE is 999.9 (24-carat gold). Buyers should ensure that the gold bars they purchase are certified and stamped for authenticity.
VAT and Other Considerations
Gold trading in the UAE comes with certain costs and regulations. Investors should consider:
- 5% VAT on Gold Purchases – The UAE imposes a 5% Value Added Tax (VAT) on gold transactions. However, there are exemptions for investment-grade gold.
- Making Charges – Some dealers charge additional fees for crafting or handling gold bars.
- Storage & Security – If buying large quantities of gold, secure storage solutions such as bank vaults or private safes should be considered.
Gold Price Predictions for 2025
Financial experts and analysts expect gold prices to remain strong throughout 2025. Goldman Sachs has projected that gold could reach $2,900 per ounce by the end of the year. This is supported by ongoing global uncertainty, central bank buying, and strong investment demand.
Is it a Good Time to Buy Gold in the UAE?
With prices rising, investors might wonder whether they should buy now or wait. The general consensus among financial experts is:
- If you are investing for the long term, gold remains a safe asset and can provide protection against inflation.
- If you are trading gold, monitoring short-term price movements and trends is essential.
Conclusion
The UAE gold market remains a hub for investors, traders, and buyers seeking high-quality gold bars. With prices on an upward trend, gold continues to be a reliable asset for wealth preservation and investment.
Genor DMCC is your trusted partner in gold trading, providing expert guidance, competitive pricing, and a secure platform for investment. Our commitment to transparency and excellence ensures that investors make informed decisions in the ever-evolving gold market. Partner with Genor DMCC today and invest with confidence.
