Gold’s Rising Appeal in the UAE Amidst Global Economic Shifts

James Campion, Popular Investor at eToro said, “Gold’s rally could be just beginning as it is an asset well positioned for almost any eventuality. It provides significant protection to a US Federal Reserve policy error, and hedges if inflation rises, and performs well if rates fall in the coming months.

“In the current global climate of heightened geopolitical risks, gold is not just a safe haven but a strategic asset. With central banks, including those in the Middle East, led by Qatar and Turkey, increasing their gold reserves significantly above average in the last two years, it is clear there is a concerted shift towards the asset.

“The dynamic of the gold market in Dubai reflects a broader trend where investors are increasingly looking to diversify their portfolios. The majority of investors remain historically underweight in gold, holding less than 1% of their portfolios in the metal, against a traditional recommendation of 5%. This trend comes at a time when the market volatility index (VIX) is hovering around a four-year low, suggesting a period of market complacency that could lead to increased volatility and further drive investors towards gold.

“Given the increased accessibility through online platforms to the GLD ETF and the ongoing economic indicators, we foresee a continued rise in gold investment globally and for some time, this could be the beginning of a gold super cycle.”