Gold is gaining fresh attention among UAE investors as ongoing global uncertainty, political tensions in the US, and strong local market confidence drive demand for safe-haven assets.
The recent move by US President Donald Trump to remove Federal Reserve Governor Lisa Cook has raised concerns about central bank independence, pushing global investors toward gold. According to market analysts, the UAE is following suit, with gold and local equities both attracting strong interest.
Gold’s strong performance
The price of gold has risen 29% so far in 2025, following a 27% gain in 2024, marking its best two-year stretch in over a decade.
“It’s been a stellar year for gold, with the precious metal up 29%, making it one of the best performing assets in 2025 and its best year in 15 years,” said Josh Gilbert, Market Analyst at eToro.
“This builds on the 27% gain we saw in 2024, underpinned by rising investor allocations, uncertainty becoming the new normal, and consistent central bank buying.”
UAE market confidence
eToro’s latest Retail Investor Beat survey reveals that 85% of UAE-based retail investors have confidence in local equities. However, nearly half (49%) also view gold as the most resilient asset amid ongoing trade volatility.
“In its own right, UAE markets are also being seen as something of a ‘safe-haven’ by investors with limited impact from tariffs and support by strong economic fundamentals,” the survey report notes.
With over 90% of respondents expecting trade tensions to affect their portfolios in the coming months, demand for defensive assets like gold is rising.
Outlook for gold
Analysts believe the outlook remains positive for the precious metal. Factors such as expected rate cuts by the US Federal Reserve, a weaker US dollar, and sustained investment demand are likely to support prices.
“Gold as a portfolio stabiliser continues to prove its worth,” Gilbert added. “Even in the age of digital assets and complex financial products, a bit of that classic yellow metal can provide balance and reassurance.”
In the UAE, where both economic stability and global risk awareness coexist, gold is increasingly seen as a key part of diversified investment strategies.
