Asian demand has changed the gold market this year, driving gold prices to historic highs. The latest report from Dubai Multi Commodity Centre (DMCC) shows that although the market has recently fallen from its peak, Asia's influence in the market is expected to grow.

Dubai Multi Commodity Center emphasizes that Dubai and the United Arab Emirates have a unique position as an important bridge between the East and the West. The report states that the center envisions the beginning of the "Asian Century" of gold, with a focus on developing new gold economic corridors among BRICS countries, including the United Arab Emirates.

Ahmed Bin Sulayem, Executive Chairman of Dubai Multi Commodity Centre, said, "In recent years, we have witnessed historic changes in the precious metal market driven by Western sanctions, which have forced central banks to purchase record amounts of gold and led many countries to reconsider their dependence on the US dollar

He said in a statement, "We are seeing the formation of a new gold corridor across Asia centered around Dubai - the United Arab Emirates becoming the world's second-largest gold trading center last year is an example

Amidst the optimistic outlook, the UAE's gold trading has seen a significant increase this year. The Dubai Multi Commodity Centre reported that the value of gold flowing through Dubai in 2024 reached $129 billion, an increase of 36% from the previous year.

The center also pointed out that the United Arab Emirates has surpassed the London market to become the world's second largest gold trading center.

The report emphasizes that geopolitical challenges, including sanctions against Russia, have shaken the global financial economy, prompting countries around the world to reconsider their dependence on the US dollar and the safety of their gold holdings. As a result, central banks around the world have increased their gold purchasing activities and transported gold stored in the United States back home to diversify the US dollar. Some central banks even use gold instead of the US dollar in trade transactions. This shift is pushing gold prices to unprecedented levels, causing a chain reaction on the global economy

With the increasing role of gold in the global economy, the Dubai Multi Commodity Centre report also provides important recommendations for shaping future market growth, such as enhancing transparency and regulation in the gold market, emphasizing support for digital innovation, and improving access to emerging markets.

Daily chart of spot gold