WHAT GOLD'S SURGE MEANS FOR BUYERS IN 2026

After a record 2025, gold demand shifts from volume to value heading into the new year

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Gold prices in Dubai reached another all-time high on Tuesday, with 24-carat gold reaching Dh540.25 per gram. The popular 22-carat variety shattered the Dh500 barrier for the first time at Dh500.25. Barely a month ago, on November 24, those levels lingered at Dh495 and Dh458.50, respectively. This marks the 50th record-breaking day for gold this year, mirroring bullion's global push past $4,480 an ounce after Monday's 2.4 per cent surge, its largest single-day gain in over a month.

The past month paints a clear picture of relentless upward pressure. On November 24, 24-carat gold traded at Dh495 with 22-carat at Dh458.50. Prices edged higher through late November, hovering around Dh500 for 24-carat by month's end. Early December saw steady gains into the mid-Dh510s, stabilising briefly around Dh518 mid-month before accelerating. By December 17, both varieties topped Dh520 and Dh480, then surged past Dh530 and Dh490 by December 22. Tuesday's leap capped a month in which 24-carat rose by over 9 per cent overall.

Despite record prices, gold's cultural role in weddings has remained intact. What has changed is how families manage budgets.

Retailers say wedding purchases have been rationalised rather than postponed. Families are choosing lighter designs, spreading purchases across stages or combining gold with studded jewellery to manage costs.

Bafleh introduced necklaces weighing under 10 grams and earrings as light as 2 grams to meet demand.

"The cultural imperative remains strong," Vora said. "Families still want brides to have gold, but they are adapting."