Dubai: 22K Gold Prices Hit All-Time High Of Dh400 Is It Time To Sell Or Buy?

The 22K gold price hit an all-time high of Dh400 per gram mark for the first time ever in Dubai as the yellow metal also crossed the key psychological barrier of $3,600.

On Sunday, gold was trading at a record high with 24K selling at Dh433.25 per gram, 22K at Dh400.25, 21K at Dh383.75, and 18K at Dh328.75, according to Dubai Jewellery Group data.

Spot gold was trading at $3,586.76 per ounce, up 1.06 per cent. It touched $3,600 on Friday amidst expectations of deeper interest rate cuts by the US Federal Reserve.

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When prices peak, some shoppers put their jewellery purchases on hold due to affordability, but some residents who invest in the gold coins and bars are in a quandary whether to buy as the rally continues or sell as profit-taking may happen.

Rania Gule, senior market analyst for Mena at xs, advises UAE residents and investors that one could consider taking partial profits around current levels near $3,600, while retaining another portion to benefit from the continuation of the rally toward $3,700 if the metal holds above key support.“At the same time, monitoring these support levels closely is essential to identify additional buying opportunities or re-entry after any potential deep correction,” she suggested.

Gule told Khaleej Times that managing the portfolio through partial profit-taking while retaining a strategic portion represents the most prudent approach to balance returns and risk.

“Yes, gold is currently experiencing a strong upward rally after reaching the $3,600 per ounce level on Friday, reflecting robust demand for the metal as a safe haven amid the volatile global economic environment, including expectations of a US interest rate cut and the ongoing weakness of the dollar. This rise reinforces the long-term bullish trend for gold, supported by persistent global inflation and geopolitical uncertainty, making gold an attractive option for investors seeking safety and value preservation,” said the senior market analyst for xs.

If yellow metal experiences short-term correction and profit-taking, she sees the first support for gold is expected around the $3,520 to $3,500 area.

“If this level is breached during the daily close, the correction could extend to $3,411 to $3,400. On the other hand, if gold holds above $3,550 and successfully retests the $3,600 level, the upward rally could continue toward $3,700, before the market potentially experiences a deeper and longer correction down to $3,325 to $3,300, prior to attempting a move toward new highs,” Gule said.

Rashad Hajiyev, founder of RM Capital Consulting, expects a pullback in gold prices next week to retest breakout points.

“Gold is not going anywhere until the Fed meeting to be held on September 17. I expect more red days in gold next week than green. And that is the best thing to happen to gold. I do not want a pointless rally disregarded by miners ending in a deeper pullback later on. I would like to see gold to solidify stair steps,” he said.

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