Gold prices soared on the first trading day of 2025, with rates in Dubai climbing by more than Dh1 per gram. The increase follows a year of significant gains for the precious metal, driven by geopolitical tensions, central bank buying, and U.S. fiscal challenges.
Data from the Dubai Jewellery Group showed a sharp rise in gold prices on Wednesday morning. The 24-carat variant was priced at Dh318 per gram, up Dh1.75 from its closing rate of Dh316.25 on the previous trading day. Meanwhile, 22-carat gold increased by Dh1.5 to Dh294.5 per gram, and 21-carat and 18-carat variants opened higher at Dh285 and Dh244.5 per gram, respectively.
Globally, spot gold last closed at $2,624.49 per ounce on New Year’s Eve. Markets were closed for the holiday, but the metal’s momentum carried forward from 2024, during which it surged by approximately 27%, reaching an all-time high of $2,790 per ounce.
Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, attributed gold’s strong performance to U.S. interest rate cuts, robust central bank purchasing, and persistent geopolitical uncertainties. “Gold had a stellar year in 2024, and further gains could be on the horizon, particularly if global equity markets experience a downside correction,” she said.
Analysts are optimistic about gold’s trajectory in 2025, forecasting prices could reach $3,000 per ounce. Factors driving this projection include escalating geopolitical tensions in the Middle East and other regions, continued central bank accumulation of gold reserves, and concerns over the growing U.S. debt and deficit.
Gold has historically been viewed as a safe-haven asset during periods of economic and political uncertainty. Analysts expect demand to remain strong as investors seek stability amid volatile equity markets and ongoing global challenges.
The precious metal’s remarkable performance underscores its enduring appeal, particularly in uncertain times. With economic and geopolitical pressures showing no signs of easing, the outlook for gold remains robust, setting the stage for another potentially record-breaking year.
As markets fully reopen after the New Year holiday, all eyes will be on how global economic trends and investor sentiment shape the trajectory of gold prices in the coming months.
