Dubai’s gold prices hit their highest in seven weeks on Thursday following their largest one-day gain in months. Investors as well as jewellers have been wondering whether now is the right time to realise their gains. This rally was similar to those seen in international gold prices which shot up amid hopes of reduced US interest rates and dollar weakness.
Dubai’s gold price for 24-carat gold increased by Dh21.75 per gram to Dh514 from Dh492.25 per gram previously. Other variants also recorded significant increases, with 22K reaching Dh476, 21K climbing to Dh456.25, and 18K rising to Dh391.25. The move marks the highest local gold prices in several weeks after the precious metal traded below the Dh500-per-gram level earlier this month.
The rally follows a strong rebound in international markets, where spot gold advanced to a seven-week high above $4,250 per ounce. Analysts attributed the gains to falling US Treasury yields, a softer US dollar and growing expectations that the US Federal Reserve may adopt a less aggressive monetary policy after recent economic data. Hopes of easing geopolitical tensions in the Middle East have also influenced investor sentiment across commodity markets.
Jewellery retailers in the UAE said the sharp increase could encourage some residents to sell old jewellery or investment holdings, particularly those who purchased gold when prices were significantly lower. At the same time, higher prices may temporarily reduce retail demand for new jewellery purchases, as consumers often delay buying until prices stabilise.
Market observers say investors should avoid making decisions based solely on short-term price movements. While current levels provide an opportunity for profit-taking, long-term buyers may prefer to wait for further signals from the US Federal Reserve and upcoming economic data, including employment figures that could influence interest-rate expectations.
Analysts also noted that gold remains a preferred safe-haven asset during periods of market uncertainty. Whether prices continue rising or retreat in the coming weeks will largely depend on the direction of the US dollar, central bank policy and broader geopolitical developments. For now, Dubai’s bullion market is experiencing one of its strongest rallies of the summer, attracting renewed attention from investors and jewellery buyers alike.
