Dubai, October 16, 2025 — The gold rate in Dubai is climbing steadily this week after Bank of America (BofA) revised its global gold price forecast sharply upward, projecting prices could reach $5,000 per ounce by 2026. The bullish outlook reflects growing investor interest in precious metals amid economic uncertainty, rising geopolitical tensions, and expectations of lower interest rates worldwide.
Bank of America’s Bullish Outlook
In its latest commodities research report released on October 13, BofA lifted its average gold price forecast for 2026 to $4,400 per ounce, with potential highs of $5,000 per ounce, citing continued demand from central banks and institutional investors seeking safe-haven assets.
The report also noted that silver prices could climb to $65 per ounce over the same period, driven by robust industrial demand and renewable energy adoption.
This revision marks one of the most optimistic forecasts by a major global bank, signaling renewed confidence in gold as both a hedge against inflation and a stabilizing investment amid market volatility.
Gold Rate in Dubai Reflects Global Trend
The gold rate in Dubai mirrored the global rally, with 24K gold trading near AED 286 per gram and 22K gold around AED 263 per gram on Tuesday, October 15. The surge follows a week of consistent gains in the local market, with prices up nearly 4% month-on-month, according to Dubai Gold and Jewellery Group data.
Traders in the Deira Gold Souk reported strong retail buying ahead of the festive season, particularly from Indian expatriates preparing for Dhanteras and Diwali celebrations. The gold rate in Dubai often fluctuates with international prices, as the city serves as a major global hub for bullion trading and jewelry exports.
“With global uncertainty rising, people are moving back to gold as a safe investment,” said Anil Dhanak, Managing Director of Kanz Jewels. “We’re seeing renewed demand from both retail customers and institutional investors.”
Why Gold Prices Are Rising
According to analysts, multiple factors are driving the uptrend in gold prices:
- Global Economic Uncertainty: Slowing growth in major economies, particularly the U.S. and China, has renewed concerns over recession risks.
- Interest Rate Expectations: As central banks begin cutting interest rates, returns on traditional assets decline, making gold more attractive.
- Geopolitical Risks: Ongoing tensions in Eastern Europe and the Middle East continue to boost demand for safe-haven assets like gold.
- Central Bank Purchases: Nations like China, India, and Turkey have increased their gold reserves, further tightening supply.
These factors have pushed investors to diversify portfolios, leading to a steady climb in the gold rate in India and Dubai.
Gold Rate in India: Festive Demand Adds Momentum
While Dubai remains one of the most active gold trading centers globally, the gold rate in India has also surged to record highs. As of October 15, 24K gold in Delhi stood at ₹6,925 per gram, while 22K gold was priced around ₹6,350 per gram, according to data from the India Bullion and Jewellers Association (IBJA).
The increase comes just ahead of the Dhanteras festival, traditionally considered an auspicious time to buy gold. Retail demand across India’s major cities is expected to remain strong through late October.
“With the Indian rupee weakening and global prices climbing, local gold rates are likely to remain elevated through the festive season,” said commodity analyst Amit Khare.
Dubai as the Gold Capital of the World
Dubai’s position as a global gold trading hub gives it a unique advantage in responding to market shifts. The emirate’s tax-free gold policy, robust logistics network, and central geographic location continue to attract traders and tourists from around the world.
Industry experts say the city could benefit further if global prices rise to $5,000 per ounce, as forecasted. Gold exports from the UAE already account for nearly 30% of non-oil exports, and stronger prices could translate to higher revenues for both refineries and retailers.
What Investors Should Watch
Analysts caution that while the gold rate in Dubai may continue its upward trend, volatility could increase in the short term as markets react to economic data from the U.S. and China. Investors are advised to track central bank decisions closely, as future rate cuts could further boost gold’s appeal.
Meanwhile, long-term investors remain optimistic. The combination of rising demand, limited new supply, and structural shifts in global finance suggests that gold could retain its strength well into 2026.
Conclusion: A Golden Opportunity Ahead
With Bank of America’s forecast placing gold at an unprecedented $5,000 per ounce, the global gold market appears poised for a multi-year bull run. The gold rate in Dubai has already begun reflecting this optimism, supported by festive demand, safe-haven buying, and strong economic fundamentals.
For both retail buyers and institutional investors, the message is clear — gold’s shine is far from fading.
For the latest updates on markets, commodities, and global finance, visit StartupNews.fyi.
