*As of March 12, 2025, gold prices in the United Arab Emirates (UAE) have remained stable, reflecting a broader trend of steadiness in the global gold market. According to data from Bullion Rates, the price of gold stood at 10,692 United Arab Emirates Dirhams (AED) per ounce on March 6, 2025, showing minimal change compared to the previous day’s price of AED 10,721 per ounce.
Current Gold Prices in UAE:
| Unit Measure | Gold Price in AED |
|---|---|
| 1 Gram | 344.70 |
| 10 Grams | 3,447.00 |
| Tola | 4,022.15 |
| Troy Ounce | 10,692.00 |
Bullion Rates calculates gold prices in the UAE by adapting international prices (USD/AED) to the local currency and measurement units. Prices are updated daily based on market rates at the time of publication and are intended for reference; local rates may vary slightly.
Global Market Trends and Projections
The stability in UAE gold prices aligns with global market trends, where gold has experienced a significant rally over the past year. Several major financial institutions have projected that this upward trajectory will continue into 2025.
- Goldman Sachs has reiterated its bullish stance on gold, citing increased central bank demand and anticipated interest rate cuts by the U.S. Federal Reserve. The bank forecasts that gold prices could reach $2,700 per ounce by early 2025.
- Heraeus Precious Metals predicts that gold could continue its record appreciation into 2025, driven by further interest rate cuts from major central banks and a potential weaker dollar. They expect gold prices to range from $2,450 to $2,950 per ounce, supported by central bank purchases, geopolitical tensions, and economic stimulus measures in China and India.
Factors Influencing Gold Prices
Several key factors are contributing to the current stability and projected growth in gold prices:
- Central Bank Purchases: Central banks, particularly from emerging economies such as China, India, and Turkey, have been increasing their gold reserves to diversify assets and support their currencies during turbulent times. In February 2025, China’s central bank increased its gold reserves for the fourth consecutive month, reaching 73.61 million fine troy ounces, up from 73.45 million in January.
- Interest Rate Policies: Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold. Anticipated interest rate cuts by major central banks, including the U.S. Federal Reserve, are expected to further boost gold’s appeal as a safe-haven asset.
- Geopolitical Tensions: Ongoing geopolitical uncertainties, such as trade disputes and regional conflicts, have historically driven investors towards gold as a hedge against volatility. The potential return of Donald Trump as U.S. president could also contribute to price stability due to increased trade uncertainty.
- Currency Fluctuations: Gold often has an inverse correlation with the U.S. dollar. When the dollar depreciates, gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times.
Local Market Implications in the UAE
The UAE, particularly Dubai, is renowned for its vibrant gold market, often referred to as the “City of Gold.” Stable gold prices are crucial for the local economy, influencing sectors ranging from retail jewelry to investment portfolios. The steadiness in gold prices provides confidence to both consumers and investors, ensuring sustained demand in the market.
Investment Considerations
For investors in the UAE considering gold as part of their portfolio, the current stability presents both opportunities and considerations:
- Diversification: Gold continues to serve as a valuable diversification tool, offering a hedge against inflation and currency depreciation.
- Market Timing: While projections indicate potential growth in gold prices, investors should remain vigilant of global economic indicators and central bank policies that could influence price movements.
- Local Market Dynamics: It’s essential to consider local factors, such as import duties and currency exchange rates, which can impact the final purchase price of gold in the UAE.
Conclusion
As of March 12, 2025, gold prices in the UAE remain steady, reflecting a broader global trend of stability in the gold market. With projections from major financial institutions indicating potential growth in gold prices, driven by factors such as central bank purchases and anticipated interest rate cuts, investors and consumers in the UAE can approach the gold market with informed confidence. However, it’s crucial to stay informed about global economic developments and local market conditions to make well-rounded investment decisions.
