Gold prices surged to unprecedented levels in Dubai on Sunday, with 22K gold crossing the Dh400 per gram mark for the first time, while global spot prices briefly breached the key $3,600 per ounce barrier.
According to data from the Dubai Jewellery Group, 24K gold was trading at Dh433.25 per gram, 22K at Dh400.25, 21K at Dh383.75, and 18K at Dh328.75. Spot gold stood at $3,586.76 per ounce, marking a 1.06 percent rise after touching $3,600 on Friday. Analysts attributed the rally to expectations of deeper interest rate cuts by the US Federal Reserve, coupled with ongoing dollar weakness and global economic uncertainty.
The sharp rise has left many buyers divided. While some shoppers are holding off jewellery purchases due to affordability concerns, investors in gold coins and bars face the dilemma of whether to lock in profits or continue holding in anticipation of further gains.
Rania Gule, senior market analyst for MENA at xs.com, advised residents and investors to consider a balanced strategy. “Taking partial profits near $3,600 while keeping a portion invested could help capture further upside if prices move toward $3,700,” she told Khaleej Times. “At the same time, monitoring support levels is critical to identify new buying opportunities or re-entry points after corrections.”
Gule emphasized that gold remains a preferred safe-haven asset amid inflationary pressures and geopolitical tensions. “This rally reflects robust demand for gold as a store of value. Persistent inflation, rate cut expectations, and uncertainty across global markets continue to support a long-term bullish trend,” she said.
Technical charts suggest that short-term corrections are possible. Gule identified support zones between $3,520 and $3,500, warning that a break below could extend declines toward $3,400. Conversely, if gold sustains levels above $3,550 and retests $3,600 successfully, the rally could push toward $3,700 before a deeper correction.
Other market experts echoed caution. Rashad Hajiyev, founder of RM Capital Consulting, predicted a pullback in the coming days ahead of the Federal Reserve’s policy meeting on September 17. “Gold is unlikely to sustain an unchecked rally. A temporary pullback would allow prices to consolidate and form stronger support before attempting new highs,” he said.
Dubai, one of the world’s largest retail hubs for gold, has long been influenced by global bullion prices. With the precious metal now at record highs, industry insiders say the market will closely track Fed signals and investor behavior in the coming weeks. For now, the surge underscores gold’s enduring appeal as both a safe haven and a hedge against uncertainty.
