Dubai gold price resets record at Dh388 on first day of new season

Dubai: The Dubai gold price has just hit a new all-time record - Dh388 a gram for 22K against the previous high of Dh383.75 in June.

That for 24K is Dh419 a gram, as UAE gold shoppers and jewellery retailers try to make sense of the latest price surge.

It creates more concerns for the UAE gold and jewellery trade as the new season starts. This week is especially crucial for the business with the South Indian festival of Onam being celebrated and usually sees fresh demand for gold.

This is what will give shoppers a lot to think about - on January 1, 2025, the local 22K gold gram was Dh294.5.

And in just 9 months, there's this massive Dh90 plus increase on a gram basis, much of which has happened since April.

"The record gold prices are challenging for both the trade and the consumers," said Abdul Salam K.P., Vice-Chairman of Malabar Gold & Diamonds.

"This is is the time of the year all the retailers will stock up expecting the Diwali and other celebrations' related purchases. This year, we are moving towards light weight ornaments considering the budgets of customers."

Now, shoppers and gold retailers are not sure whether there will likely be a strong sales start to the new season.

"If Onam sales disappoint this week, the next big date will be the Diwali and Dhanteras buying season during October," said a retailer. "Let's hope gold settles down by then."

Gold surges in minutes

This morning, the Dubai gold price was at Dh382.75 - and it didn't take long for the new record to be set.

In the last 60 minutes, in the global markets, gold gained more than $25 to be $3,477 an ounce. Again, worries about the US economy are back in focus, and which is driving heavy buying into gold by investors and central banks.

"I expect the current upward correction to settle around the $3,487 an ounce in the coming days," said Anil Dhanak. Managing Director of Kanz Jewels.

For gold shoppers, it puts them back in a 'can't do much about it' situation.

"The only hope is that gold prices will cool off soon enough," said a jewellery retailer in Dubai. "How 'soon' that happens is what no one can say."

Reaction to US tariff uncertainty?

The latest gold price rise could be an instant reaction to what happened on the tariff front last Friday. A US court judged President Trump's reciprocal tariffs to be illegal - and has given the administration until October 14 to raise the issue to the US Supreme Court.

Another factor behind gold's rise is the upcoming US Federal Reserve meeting to decide on an interest rate cut. Once that happens, that's another potential boost for gold.

As for gold futures, the current forward price is at $3,543 an ounce, which means raises the chances for increases in spot gold prices in the coming days.