Gold prices in Dubai touched fresh record highs on Tuesday as the 22K variant jumped by nearly Dh3 per gram to Dh408, according to data from the Dubai Jewellery Group. The sustained rally in the yellow metal has sparked renewed interest among residents and investors, with global market forces playing a significant role in driving the surge.

At the opening of markets, the 24K variant rose Dh3 per gram to Dh440.5, while 21K edged closer to the Dh400 milestone at Dh391 per gram. The 18K variant also opened higher at Dh335 per gram. The upward trend highlights the growing momentum behind gold, which has been consistently rising over the past several weeks.

Spot gold mirrored Dubai’s trend, crossing the $3,650 level to trade at $3,655.32 per ounce at 9:30 am UAE time. Analysts noted that the next psychological barrier sits at $3,700, a level investors are now closely monitoring.

Market experts attribute the surge to a combination of global and regional factors, including weaker US economic data, expectations of interest rate cuts, central bank gold purchases, and geopolitical uncertainties. The weaker dollar, following disappointing US nonfarm payrolls data, has particularly strengthened gold’s position as a safe-haven asset.

“Over the past week, gold bulls have been unstoppable, with prices breaking through the $3,600 level. Weak US nonfarm payrolls, political turbulence in Japan, central bank gold buying, and ongoing geopolitical risks have collectively supported the upward move,” said Dilin Wu, research strategist at Pepperstone. He added that the release of upcoming US inflation data—CPI and PPI—will likely influence further price action.

Similarly, Linh Tran, market analyst at xs.com, described gold as being in a “powerful uptrend” after setting new all-time highs. “In the medium term, gold’s primary trend tilts positive if a genuine monetary-easing cycle takes shape. In that scenario, a lower-rate environment combined with a weaker dollar will continue to support the metal,” Tran said.

For UAE residents and retail investors, the sharp price rise has raised the crucial question: sell now or hold? Market analysts generally recommend holding for the short term, as global trends suggest the rally still has room to grow. However, they also caution about potential profit-taking in the aftermath of such strong gains.

“Residents who can afford to hold their gold positions may benefit further if the momentum continues. But investors should remain cautious, as markets often experience corrections following extended rallies,” said a Dubai-based trader.

The latest price movements in Dubai underline the emirate’s continued role as a global hub for gold trade and investment. With spot gold now setting sights on the $3,700 milestone, both retail buyers and large-scale investors are bracing for another week of volatility and opportunity.