Gold prices hit another record - $2,900

Dubai: Gold prices surged to $2,900 an ounce for first time as global markets and investors worried about more US tariffs.

The UAE gold rate is at Dh325 a gram, as shoppers watch the price trends from the sidelines. Between January 14 and now, the local gold price has put on Dh27 on a gram basis - a rate of increase that's never been seen before, according to jewellery industry sources.

Even after gold went past $2,800 many were hoping the next $100 level gain would take longer to come.

That wasn't how it turned out.

As long as global tariff uncertainties prevail, the dollar and gold seem to be what's favoured by investors. That means, shoppers will need to look at many factors to decide when their next purchase of gold should be.

According to forecasts by Kamco Invest, if gold gains above $2,886, then the next expected target could be $2,920 and 'maybe higher to $2,945'.

With all the price increases gold's been through in the last 12 months, a majority of UAE consumers holding gold would have exchanged for new. Because each time prices went higher by $100, it sure did look a good time to exchange.

"If any UAE resident still has some older jewellery left over, and if they don't have any emotional connection to it, the best investment option is to sell or exchange," said a jeweller.

UAE jewellery retailers say they had even seen shoppers who bought gold as recently as 6 months ago returning to exchange. Because just in the last 6 months, gold prices on an ounce basis is up nearly $400. (One ounce is equal to just over 28 grams.)