Gold prices in Dubai have surged once again, crossing the Dh370-per-gram mark for 22K gold, a threshold that could prompt shoppers to rethink their buying plans. After weeks of relatively stable pricing that encouraged steady demand, this sharp increase is shifting market sentiment just as consumer confidence had begun to return.
Gold Prices Climb Sharply: Current Rates and Recent Trends
As of Tuesday afternoon, the retail gold price in Dubai for 22K gold has jumped more than Dh7 in just a matter of days. The rates now stand at:
- 24K gold: Dh403.75 per gram (≈ $110)
- 22K gold: Dh374.00 per gram (≈ $101.85)
- 21K gold: Dh358.25 per gram (≈ $97.60)
- 18K gold: Dh307.25 per gram (≈ $83.70)
This upward move comes shortly after many UAE residents took advantage of prices around Dh365.75 ($99.60), locking in their purchases during what now appears to have been a brief window of stability. In recent weeks, jewellery retailers and the Gold Souk had seen increased footfall, with shoppers resuming purchases amid relatively calm pricing. But with gold now climbing sharply again, many potential buyers are likely to hold off in anticipation of a possible correction.
Global Drivers Behind the Price Spike
The price surge is not limited to the UAE. International spot gold prices climbed for a second consecutive day, reaching around $3,322 an ounce, up 0.6% on Tuesday in Asia, after rising 0.9% on Monday. Speaking to Gulf News, Vijay Valecha, Chief Investment Officer at Century Financial, attributed the rebound to multiple global pressures. “Despite recent losses from risk-off sentiment unwinding, gold has rebounded strongly after testing and bouncing off the long-term bullish trendline,” said Valecha. He further explained that market fears are being stoked by ongoing global uncertainties, including tensions in international trade and monetary policy decisions: “Adding to gold’s safe-haven appeal is the uncertainty surrounding trade deals with major countries, including President Trump’s fresh tariff threats on Japan. With the Federal Reserve expected to cut interest rates later this year, gold is set to attract even more attention in the coming weeks,” Valecha added. Market watchers have noted that the recent strength in gold is also linked to macroeconomic cue, particularly speculation surrounding interest rate decisions by the U.S. Federal Reserve. Expectations of a rate cut have historically led to increased investor interest in non-yielding assets like gold.
Market Sentiment: What Analysts and Traders Are Saying
According to Vivek Dhar, an analyst at the Commonwealth Bank of Australia, gold remains one of the strongest-performing assets in the current global market environment. “Despite recent losses, gold has the most short-term potential to gain if the US dollar continues to weaken,” Dhar wrote in a client note. Investors are also watching key upcoming indicators, including the U.S. jobs report and a July 9 tariff deadline, which could influence the short-term direction of gold. Many traders believe unless prices fall significantly below $3,200 an ounce, a major correction is unlikely. Market insiders have pointed out that gold prices have already gained more than 25% so far this year, and the commodity now sits less than $200 away from its all-time high set in April 2025. Some analysts saw last week’s brief decline as a routine pause in an otherwise upward trend, supported by ongoing geopolitical tensions and inflationary concerns that continue to drive demand for safe-haven assets.
What It Means for UAE Gold Buyers
With gold nearing a new local peak, shoppers in the UAE face a familiar dilemma, buy now before prices climb further, or wait for a potential pullback? The recent spike may cause hesitation, especially for casual buyers or tourists. However, those who locked in purchases last week at Dh365.75 ($99.60) may have acted at the perfect time. Looking ahead, most analysts agree that while volatility is likely to continue, the bias remains toward further upside, particularly if U.S. rate cuts materialize or new geopolitical risks emerge. For now, the market is sending a clear signal: gold remains a safe-haven asset in turbulent times, and those who wait too long might end up paying more.
