Dubai, UAE – May 8, 2025
Gold prices in Dubai have surged close to their all-time highs, influenced by global economic uncertainties and recent signals from the U.S. Federal Reserve. The current rate for 22-karat gold stands at Dh376.5 per gram, while 24-karat gold is priced at Dh406.5 per gram, approaching the previous peak of Dh381.5 recorded on April 21.

The U.S. Federal Reserve's recent decision to maintain interest rates, coupled with warnings about potential inflation and unemployment risks, has heightened investor concerns. This economic uncertainty has bolstered gold's appeal as a safe-haven asset, leading to increased demand and higher prices.

Additionally, ongoing geopolitical tensions and trade discussions have further contributed to the upward pressure on gold prices. Analysts suggest that these factors may continue to influence the market in the coming weeks.

The rising gold prices have led to a noticeable shift in consumer behavior within the UAE. Many shoppers are postponing purchases or exploring alternative options, such as lighter gold jewelry or different gemstones. Retailers in Dubai's Gold Souk report a decline in traditional 22-karat gold jewelry sales, with some consumers turning their attention to diamonds and other alternatives.

Market experts anticipate that gold prices may remain elevated in the near term, especially if global economic uncertainties persist. However, any signs of economic stabilization or policy shifts could lead to price adjustments. Consumers are advised to stay informed and consider market trends when making purchasing decisions.