The rapid growth in Asian demand is reshaping the global gold market, pushing gold prices to record highs. According to the latest report from the Dubai Multi Commodities Centre, although the gold market has recently retreated from its peak, Asia's influence on the market continues to grow. This trend is expected to shape the future landscape of global gold trading.
Leveraging its unique geographical location and economic advantages, the UAE has become an important bridge between the East and the West, playing a crucial role in the gold market. In 2024, the total gold trade through Dubai reached $129 billion, an increase of 36%, helping the UAE surpass London to become the world's second-largest gold trading hub, second only to China.
Geopolitical factors are also driving this shift. Challenges, including sanctions against Russia, have prompted central banks worldwide to significantly increase gold reserves and reassess their reliance on the dollar. This shift is altering the global economy's reserve and payment structures, pushing gold prices higher and having a profound impact on the market.
The Dubai Multi Commodities Centre's report highlights the emergence of a gold "Asian Century" centered on the UAE, including collaboration with BRICS countries to develop new gold economic corridors to promote broader regional trade. Furthermore, the center suggests enhancing transparency and regulation of the gold market, promoting digital innovation, and improving access to emerging markets to further consolidate the UAE's position in the global gold market.
As gold's role in the global economy becomes increasingly important, the UAE is leading a new wave of market transformation with its dynamic gold trading and regional cooperation, showcasing strong growth potential.
