Gold prices in the United Arab Emirates experienced exceptional volatility during the first half of the current year, opening at unprecedented historic levels before entering a broad correction wave over subsequent months, driven by shifts in global monetary policy, a stronger US dollar, rising bond yields, and a retreat in safe-haven demand following the record rally the precious metal had staged at the start of the year.
Over the period from January to the end of June, the price of 24-carat gold per gram reached its highest level of 664.50 dirhams at the end of January, before gradually declining to around 480 dirhams by the end of June — shedding more than 184 dirhams in value, equivalent to a drop of 27%. 22-carat gold likewise peaked at 615.50 dirhams per gram before falling to 445 dirhams by the end of June.
Gold started 2026 on a strong footing, supported by sustained safe-haven demand amid escalating geopolitical tensions and the uncertainty hanging over the global economy. This pushed prices to historic levels, with 24-carat gold reaching 664.50 dirhams per gram, 22-carat gold recording 615.5 dirhams, 21-carat exceeding 587 dirhams, and 18-carat approaching 503 dirhams — the highest levels seen in the market during the first half of the year.
The rally began to lose momentum in February, with 24-carat gold per gram trading in a range of 590 to 622 dirhams.
This coincided with a strengthening dollar, a renewed investor appetite for higher-risk assets, and the onset of profit-taking following gold's record gains in January.
Gold continued its volatile moves in March, opening the month at around 650 dirhams per gram for 24-carat, before gradually retreating as expectations grew that US interest rates would remain elevated for longer, with prices falling again towards the end of the month.
April saw the correction continue, as 24-carat gold per gram moved near the 570-dirham level at the start of the month before gradually declining to a range of 552–553 dirhams by month-end.
At the start of May, 24-carat gold per gram was recorded at around 555.50 dirhams, while 22-carat stood at approximately 514.22 dirhams. However, prices continued to slide throughout the month as pressure on precious metals markets persisted, with investors awaiting US inflation data and Federal Reserve decisions on interest rates.
June opened at 554 dirhams per gram for 24-carat gold, while 22-carat reached approximately 503.22 dirhams, before the pace of decline accelerated over the following weeks. By the end of the month, 24-carat gold had fallen to around 480 dirhams per gram, while 22-carat retreated to approximately 445 dirhams, 21-carat to 426.50 dirhams, and 18-carat to around 365.50 dirhams.
This decline was driven by a continuing strong dollar and rising US bond yields, bringing the first half of the year to a close at its lowest levels in six months, following a wave of sharp volatility that had begun with historic peaks in January.