Dubai, also known as ‘City of Gold’, has been considered as the most preferred for investment from traditional weddings to religious events and for investment. But after its price in the international market has crossed a record of $ 3,400 an ounce, people in Dubai are now starting to opt. Instead, people are now giving preference to diamond in Dubai or buying light gold jewelery.

Andrew Nylore, the head of the Middle East and Public Policy at the World Gold Council (WGC), said- Sona has already been most liked as an investment. In such a situation, the American tariff and other factor have done more ghee in it. Apart from this, the increasing demand for gold jewelery also has a different effect on it.

People running away from sleeping in Dubai

He said, two types of effects are being seen in Dubai. First, money is being invested as the safest for investment, on the other hand, due to high prices, the demand for jewelery is declining. In Gold Souk, Dubai, a seller told Reuters that they are looking at the trend that when the price of gold is currently increasing, people are looking towards its other option.

A shopkeeper working in Damas Jewelery said, due to the huge increase in gold prices, its buyers have come down significantly these days. While a woman who came to Gold Souk said, it is becoming difficult to afford gold, so it is better to take diamond instead of it.

Gold purchase declines in UAE

Dubai has been the most favorite place for gold buyers for the last about 80 years. According to WGC, the price of gold has increased by about 27 percent last year. Due to this, the demand for gold jewelery in UAE has declined by about 13 percent, while globally decreased by 11 percent.

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The price of gold was a decline for 4 consecutive days. But now the prices of gold will not fall, but are ready to reach the sky. Experts believe that there is a decision of America and China behind it. Talking about today, there was a tremendous jump in gold prices in the US.

Gold in the US reached $ 3,007.79 an ounce. It is about Rs 2,51087.37 lakh in Indian rupees. It saw a rise of $ 40.58 in just 24 hours. In such a situation, it is coming out in many reports that in the coming time the price of gold can increase at the speed of rocket.

How to increase gold prices

Tension is increasing in China and America regarding Donald Trump’s tariff policy. Actually, Trump had imposed the most tariff on China while announcing the reciperook tariff. In response, China imposed a tariff of 34 percent on the US. Angered by this action of China, Trump threatened to impose 50 percent tariff on Chinese imports.

Trump’s threat caused China further angry and reacted sharply to it. Experts believe that if the situation remains the same, then in the coming time, this fight can turn into a trade war. If this happens, gold will become the best option of investment and people will invest fiercely in gold. This will happen that the demand for gold will increase and its prices will reach the sky. Apart from this, the expectation of tension in Eastern Europe and Middle East, rising inflation and interest rates in the US can also increase gold prices at the speed of the pill.

Gold prices increased in India too

There was a tremendous bounce in the gold futures on India’s Multi Committee Exchange (MCX). The gold futures with June 2025 delivery were traded at Rs 87,979, a gain of 1.21 per cent or Rs 1,051, which is quite above the closing price of 86,928 on Monday.

What do big banks have to say?

The price of gold is going to reach the sky, they are not only common people, but also the top banks and analysts from all over the world. HSBC has increased its gold price estimate to $ 3,015 an ounce for 2025. While the bank of America is even more bullish, it believes that gold can go up to $ 3,063 an ounce. The report of Standard Chartered says that gold can also touch the $ 3,300 mark in the second quarter.

Central banks are also doing gold hoarding

You will be surprised to know that not only investors, but also central banks from all over the world are busy buying gold. Countries like China, India and Russia are increasing their gold reserve to reduce dependency on dollars. Due to this, demand in the market has increased further and prices are climbing. According to the report of World Gold Council, in 2025 also Central Banks can procure gold at record levels like 2023 and 2024.

If the interest rates decrease, the price of gold will increase further

America’s central bank may reduce interest rates at least twice this year. Gold will get direct benefit of this. Because when interest rates fall, investments with fixed income (such as bonds) look less attractive and the demand for gold increases. That is, it is also expected to reach the sky prices.

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