DUBAI GOLD | 16 FEBRUARY 2025

By taking these factors into account, investors may make an informed decision when purchasing gold. Dubai’s gold prices are significantly influenced by global gold prices, as opposed to supply and demand in global markets. The London Bullion Market Association (LBMA) sets the price twice a day to serve as a benchmark for gold rates in Dubai.

Both domestic and international demand have an impact on the Dubai gold market. Dubai’s demand for gold jewellery increases as a result of the significant influx of tourists, especially from China and India. When demand is low, prices are either unchanged or somewhat reduced; when demand is great, prices rise. The US Dollar’s peg to the UAE’s Dirham (AED) is another factor influencing gold prices in Dubai. Any shifts in the US dollar’s value will have a direct effect on gold prices in the United Arab Emirates. Consequently, gold prices fall as the US currency strengthens and vice versa.

Gold prices increase in reaction to political or economic upheaval and are typically seen as a safe-haven asset. Inflation, rising interest rates, and geopolitical concerns were some of the global economic factors that contributed significantly to the 2024 gold price boom in Dubai and elsewhere. Dubai has managed to hold onto its reputation as the “City of Gold” and the “Jewellery Destination of the World” due to a variety of factors. Because it is the most popular location for foreigners, tourists, and investors to purchase and invest in gold, Dubai is a hotspot for the gold trade. 

The tax-free status of Dubai is one of the main reasons for its standing as a centre for gold investments. The market has attracted buyers and investors from all over the world because of the government’ exemption of gold transactions from VAT. In contrast to many other nations, this approach produces steady and affordable rates for consumers and investors.