Dubai gold price instantly hits new record after Dh17.75 gain in 7 days

Dubai: The Dubai gold rate has surged to another high as soon as the week started, with a gram of 22K at an eye-watering Dh375.25 a gram. That for a gram of 24K is now at Dh405.25.

What all of this means is that in just one week the Dubai gold rate is higher by Dh17.75 per gram. Again, these are changes never seen before.

There is also no sign of the relative cooling off in local prices seen Thursday last, when the 22K Dubai gold rate was Dh.369.75. “I was hoping the Dubai gold rate would start this week lower because of the peace talks over Ukraine,” said Anil Dhanak, Managing Director of Kanz Jewels. “I am still hopeful that at the first signs of some progress on a ceasefire, gold prices will slide.”

But will it?

Analysts say gold has got a good chance of making a clean break for the next level - $3,400 an ounce.

It's trading now at $3,383, having crossed $3,000 mid-March and went past $3,200 and $3,300 this month.

According to forecasts by Kuwait-based Kamco Invest, a price above $3,357 'would call for another leg up towards $3,400 before $3,425'.

"On the other side, a fall below the first defense line at $3,280 is expected to trigger additional weaknesses and lead to $3,230 and maybe lower to $3,190.

The Indian festival of 'Akshaya Trithiya' - a big day for gold shopping among NRIs in the UAE and elsewhere - falls on April 30 this year. Some shoppers have pre-booked in recent days to have some leeway on what they will pay that day.

But other shoppers have just given up hope of a major price correction happening between now and end of the month.

"There has to be a bona fide crash for 22K gold to drop below Dh350 in these 10 days," said a shopper, who said anything around Dh325-Dh330 would be a 'comfortable price under the circumstances...'.