Gold Prices At A Record High In Dubai, 22K Crosses Dh405 Per Gram

Gold's rally continued as prices hit a new all-time high on Monday evening in Dubai with 24K selling at Dh437.5 while 22K hit Dh405.25.

Globally, the precious metal rose to $3,643.38 per ounce on Monday evening, driven by expectations that the US Federal Reserve will cut interest rates next week.

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.

Overall, gold represents a resilient safe-haven asset amid a weakening dollar and a slowing US labour market, supported by institutional buying and central bank reserves.

Analysts said that its future trajectory will largely depend on the combination of US monetary policy, upcoming economic data, and global demand levels, making the precious metal a strategic tool for mitigating portfolio risk.

“I believe gold is capable of testing new record highs in the coming months if these supportive factors persist, with minor corrections possible if positive data unexpectedly strengthens the dollar.”

Gule advised UAE residents and investors that one could consider taking partial profits around current levels, 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.

“Gold is currently experiencing a strong upward rally, 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.

Rashad Hajiyev, founder of RM Capital Consulting, said gold is not going anywhere until the Fed meeting, to be held on September 17.

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