Gold price in Dubai jumps above Dh370 – will shoppers now hold off or buy before it climbs?

Dubai: Just when UAE shoppers were getting comfortable with gold prices under Dh370 a gram, Dubai rates have jumped again. On Tuesday, the price of 22K gold crossed Dh370 per gram, gaining more than Dh7 in just a couple of days. For 24K, prices are now back above Dh400 per gram.

This sudden surge comes after a period of steady buying, where many UAE residents had locked in gold prices around Dh365.75. Based on current trends, those early buyers may have timed their purchases just right. (Check the latest gold prices here.)

At the same time, footfall at jewellery stores and the Gold Souk was showing signs of revival – but the fresh price spike may now cause some hesitation among shoppers waiting for another dip.

International gold prices have risen for a second day in a row, fuelled by growing expectations that the US Federal Reserve could start cutting interest rates later this year. Spot gold climbed 0.6% to around $3,322 an ounce on Tuesday afternoon in Asia, adding to Monday’s 0.9% gain.

"Despite recent losses from risk-off sentiment unwinding, gold has rebounded strongly after testing and bouncing off the long-term bullish trendline," said Vijay Valecha, Chief Investment Officer, Century Financial.

"Adding to gold's safe-haven appeal is the uncertainty surrounding trade deals with major countries, including President Trump's fresh tariff threats on Japan. With the Federal Reserve expected to cut interest rates later this year, gold is set to attract even more attention in the coming weeks."

Investors are also watching for signs from the upcoming US jobs report and a July 9 tariff deadline tied to trade policy, both of which could impact gold’s short-term trajectory. Gold has already gained more than 25% this year, and remains less than $200 below its all-time high set in April.

According to analysts at the Commonwealth Bank of Australia, gold remains one of the strongest assets in the current market. “Despite recent losses, gold has the most short-term potential to gain if the US dollar continues to weaken,” said analyst Vivek Dhar in a note.

Experienced traders believe that unless gold prices fall below $3,200, a sharp correction is unlikely. Some had viewed last week’s dip as a normal pause after a strong rally, especially since gold remains supported by persistent geopolitical risks and inflation concerns.

Looking ahead, most market watchers say gold could stay volatile but biased toward the upside – especially if more signs of Fed rate cuts or fresh global tensions emerge.

For UAE shoppers, the big question now is whether to buy before prices climb further – or wait it out in hopes of another dip. If recent market action is anything to go by, waiting too long might just cost more.