Gold prices surged to fresh record highs in Dubai on Tuesday, with the popular 22-karat variant climbing nearly Dh3 per gram to reach Dh408 at the opening of trade, according to data from the Dubai Jewellery Group.
The upward momentum extended across all categories of the precious metal. The 24K variety rose by Dh3 to Dh440.5 per gram, while 21K inched closer to the Dh400 threshold, trading at Dh391. The 18K variant opened at Dh335 per gram. The steady climb has continued for several sessions, reinforcing gold’s status as a safe-haven asset amid global economic uncertainties.
Market analysts attribute the rally to expectations of monetary easing in the United States, a weakening dollar, and sustained buying by central banks worldwide. “Over the past week, gold bulls have been unstoppable, with prices breaking through the $3,600 level,” said Dilin Wu, research strategist at Pepperstone. “Weak US nonfarm payrolls, political turbulence in Japan, central bank gold buying, and ongoing geopolitical risks have collectively supported the upward move. This week, the release of US CPI and PPI may provide further guidance for price action.”
Spot gold also gained ground in international markets, trading at $3,655.32 an ounce by 9:30 a.m. UAE time. The yellow metal’s sharp ascent has shifted attention to the next psychological milestone of $3,700 per ounce, with many market watchers predicting that the rally still has room to run.
Linh Tran, market analyst at xs.com, said gold remains in a powerful uptrend with a clear record-breaking trajectory. “In the medium term, gold’s primary trend tilts positive if a genuine monetary-easing cycle takes shape; in that scenario, a lower-rate environment combined with a weaker dollar will continue to support the metal,” Tran noted.
For UAE residents and investors, the rally poses both opportunities and risks. Analysts suggest holding onto gold for now to potentially benefit from further price gains. However, they caution that profit-taking could occur following the strong upward run of recent months, which may trigger short-term volatility.
The surge comes at a time when global markets are grappling with weaker US jobs data and broader geopolitical tensions, conditions that have historically driven demand for safe-haven assets like gold. In Dubai, one of the world’s leading hubs for gold trade, the impact is being felt at the retail level as consumers weigh whether to buy, sell, or hold amid record-breaking valuations.
With prices already breaking past historic highs, the coming weeks will prove crucial in determining whether gold sustains its rally toward $3,700 or pauses for consolidation.
