Buying Gold in Dubai This Week? Prices Rise as 2026 Trading Begins on a Cautious Note

Dubai’s gold market has opened 2026 on a firmer footing, with prices edging higher as global trading resumed after the year-end holidays. While early gains have offered some relief to buyers, market watchers say volatility remains firmly in play.

As of Friday morning, 24-karat gold in Dubai was priced at Dh524 per gram, up from Dh520.25 a day earlier. The popular 22-karat variety also strengthened, rising to Dh485.25 from Dh481.75 earlier in the week. The move reflects a broader recovery across international bullion markets as investors cautiously return after the holiday lull.

Global markets lend support to bullion

Dubai’s price action mirrors gains overseas, where gold and silver both advanced as trading volumes slowly picked up. Spot gold climbed toward $4,350 an ounce, while silver rose more than 1%, extending momentum from a year that marked the strongest performance for precious metals since 1979.

Analysts attribute the support to expectations of US interest-rate cuts and a weaker dollar in 2026-both factors that traditionally favour gold. However, thin liquidity and selective risk-taking suggest that short-term swings are still likely.

Portfolio rebalancing could bring volatility

Despite the positive start, some investors are exercising caution. After a sharp rally in 2025, gold and silver now make up a larger share of many investment portfolios. This could trigger portfolio rebalancing, where funds trim exposure to lock in profits-potentially creating short-term pressure on prices.

For retail buyers in Dubai, this means opportunities may emerge on dips, but timing remains critical.

Risk appetite returns to equities

Beyond bullion, broader markets have begun 2026 with renewed confidence. Asian equities rose nearly 0.8%, led by technology and semiconductor stocks, with artificial intelligence once again driving investor enthusiasm. US equity futures also moved higher, while cryptocurrencies gained and the dollar softened.

Still, not all signals are bullish. With global equities delivering their strongest performance since 2019, concerns over stretched valuations persist. Several market strategists have warned that corrections of 10% or more remain possible in the year ahead.

What this means for Dubai buyers

For residents, investors, and entrepreneurs involved in business setup in Dubai, gold continues to play a dual role-as both a cultural asset and a financial hedge. While early-2026 prices are higher, long-term demand fundamentals remain intact, especially amid uncertainty around rates, currencies, and global growth.

As trading volumes normalise in the coming weeks, buyers are advised to track global cues closely and stay prepared for near-term fluctuations.