Gold Surges 16% in 2025: Should Investors Hold or Sell?

Gold has been on a relentless rally in 2025, surging over 16% since the start of the year and recently crossing the $3,000 per ounce mark—well ahead of previous forecasts. This record-breaking milestone has left investors weighing whether to sell and lock in profits or hold out for further gains.

Gold Prices in the UAE: Buy Now or Wait?

In the UAE, gold buyers face a similar dilemma: purchase now before prices climb further or wait for a possible dip. As of Wednesday evening, the 24-karat gold rate stood at Dh363.25 per gram, slightly higher than Tuesday’s Dh363. Similarly, 22-karat, 21-karat, and 18-karat gold were priced at Dh336.50, Dh322.50, and Dh276.50 per gram, respectively.

What’s Driving Gold’s Surge?

The latest spike in gold prices is fueled by several key factors:

• Rising Inflation Concerns – Investors continue to seek gold as a hedge against inflationary pressures.

• Global Interest Rate Cuts – Expectations of lower interest rates make gold more attractive as an investment.

• Geopolitical Uncertainty – Trade tensions and economic instability have pushed more investors toward safe-haven assets.

• Central Bank Purchases – Governments worldwide are increasing their gold reserves, further driving up demand.

Commodity analysts Warren Patterson and Ewa Manthey of ING attribute the rally to global trade uncertainties. “Gold has rallied more than 16% this year as escalating trade actions bolstered safe-haven buying,” they noted.

J.P. Morgan’s Head of Global Commodities Strategy, Natasha Kaneva, added: “We maintain a multi-year bullish outlook on gold. A universal tariff scenario could supercharge gold prices further.”

Will Gold Continue Climbing or Stabilize?

While some analysts believe gold could stabilize after such rapid gains, others argue that prices may continue to rise if central banks proceed with expected rate cuts.

Investment manager Brody Dunn noted, “Following a significant rally, markets often enter consolidation phases. Given gold’s strong 2024 and early 2025 performance, some profit-taking and price stabilization are likely.”

However, Dubai-based metals analyst April LaVine pointed out, “In 2024, gold surged 27% to $2,617 per ounce. This year, it has already exceeded expectations, surpassing $3,000 earlier than projected.”

Investor Dilemma: Sell or Hold?

Short-Term Investors:

If you have already profited from this rally, now may be a good time to cash in. Gregory Shearer, Head of Base and Precious Metals Strategy at J.P. Morgan, advised, “Gold remains well-positioned to hedge against macro uncertainty, but short-term profit-taking may occur.”

Long-Term Investors:

If you view gold as a long-term store of value, holding onto it may still be beneficial. Some experts suggest that further record highs could be possible if global uncertainty persists.

Will UAE Gold Buyers See Better Prices?

Unlike 2024’s gradual price increase, 2025’s sharp rally has left little room for gradual accumulation. While some expect further price hikes, a potential consolidation phase may provide buying opportunities.

For those purchasing jewelry for weddings, festivals, or investments, a more stable market could allow for better planning and strategic purchases.

Bottom Line

Gold’s climb past $3,000 has exceeded expectations, leaving investors with a crucial decision. While some analysts predict further gains, others warn of potential stabilization or slight pullbacks.

For investors, the choice between selling or holding depends on financial goals and risk tolerance. Meanwhile, UAE gold buyers must decide whether to act now or wait for possible price corrections in this unpredictable yet rewarding market.