As Eid Al Fitr approaches this weekend in the UAE, gifting remains a central tradition, with over 50% of residents expected to increase their spending on presents. This surge is influenced by both emotional and financial factors. Notably, 41% of individuals attribute their willingness to spend more to improved personal finances, up from 36% last year, and 28% wish to make the occasion extra special for their loved ones, marking a 23% rise compared to the previous year. Will the gold prices in the UAE remain steady during this festive stretch?
Experts highlight that March has been one of the most bullish months in the past four years, with gold gaining an average of 4.2% and a 75% success rate. As for April, gold has historically risen by an average of 1.27%, also with a 75% hit ratio. This suggests a positive trend for gold prices around Eid Al Fitr.
Gold price in UAE
As of today, gold prices in the UAE have risen by AED4, bringing the rate for 22K gold to AED343 per gram, in line with sharp increases in global bullion prices. Previously, local gold prices had settled at AED339.5 per gram for 22K, marking a AED4.25 jump from the previous week. Since the beginning of March, gold rates in the UAE have surged by AED20. Meanwhile, in Saudi Arabia, the price of 22K gold currently stands at SR347 per gram.
Predictions for gold price in UAE during Eid Al Fitr
Gold holds deep cultural significance for Middle Eastern and Arabic societies, with demand for the precious metal often spiking during festive and religious times like Eid, impacting its price in local markets. Gold has continued its significant rise this year, surging past the $3000 per ounce mark, giving investors about 15% returns so far on a year-to-date basis. “This translates to UAE prices of AED363.25 per gram for 24K, AED336.25 for 22K, AED322.5 for 21K, and AED276.5 for 18K as of 25th March 2025, marking about an AED8-10 increase in per gram prices from a month ago,” shared Vijay Valecha, CIO at Century Financial.
As the festive season approaches, about 90% of UAE residents plan to give gifts in 2025, sticking to traditional elements of Eid celebrations. A survey by Toluna and MetrixLab pointed to luxury gifting rising, with about 29% of respondents specifically opting for gold and diamond jewellery, up from 27% previously. Every year, the arrival of major festivals like Eid Al Fitr and Akshaya Trithiya usually coincides, contributing to an uptick in demand for gold jewellery. Both festivals traditionally result in the busiest and most lucrative days for gold purchases in the UAE’s retail sector.
High prices could deter buyers on a tight budget, with retailers indicating consumer preferences shifting towards 18K gold and towards lighter and more affordable options.
“The average spend on Eid jewellery gifting ranges between AED1000 and AED1800, with 18K pendants, earrings, and bracelets dominating purchases, compared to 24K or 22K gold. However, for investment purposes, buyers still prefer 22K gold in traditional markets like the Gold Souk,” Valecha added.
In a bid to keep up the demand, major gold shops are offering compelling promotions – including discounts on making charges, raffles, and free gold coins on purchases above a given threshold – to entice buyers. Some relief for local buyers during surging gold prices could be the slight drop in prices of about AED4 per gram from peak levels achieved a few days ago.
For the year ahead, the trajectory of gold remains bullish, driven by tariff uncertainties, geopolitical tensions, and rising inflation expectations. This consequent economic uncertainty is pushing investors to a flight to gold’s safety as a reliable store of value. Robust investment demand, evident by ETF inflows and continued central bank buying in a bid to reduce U.S. dollar dependence, has raised price targets for gold above $3200 by the end of the year.
