Dubai's gold price surpasses Dh370 - will buyers refrain or purchase prior to further increase?
Dubai, July 1, 2025 — Gold prices in Dubai have experienced a significant surge over the past month, with 22K gold recently crossing Dh374 per gram, marking an increase of more than Dh7 in just a few days [1][4]. This upward trend follows a period of relatively stable pricing around Dh365.75.
The recent increase in gold prices can be attributed to several factors. Firstly, market hopes for interest rate cuts, particularly from the US Federal Reserve, have increased. Lower rates tend to reduce the opportunity cost of holding non-yielding assets like gold, supporting higher prices [1][3].
Secondly, demand for gold as a safe haven remains robust due to ongoing uncertainties in global markets and trade relations. Despite some easing geopolitical tensions such as the Iran-Israel ceasefire, the allure of gold as a secure investment remains strong [1][3].
Thirdly, the rapid price rise is influencing buyer behaviour, with consumers rushing to lock in purchases before prices climb further, reversing the calm market sentiment experienced in previous weeks [1].
Fourthly, disappointing US job data and signs of contained inflation have led to expectations of more than 50 basis points of rate cuts this year, further underpinning gold’s appeal [3].
The price of 24K gold in Dubai is now above Dh400 per gram, and the footfall at jewellery stores and the Gold Souk in Dubai is showing signs of revival [2]. Many UAE residents had recently locked in gold prices around Dh365.75, but the recent surge may prompt some to reconsider their decision [2].
Experienced traders believe that unless gold prices fall below $3,200, a sharp correction is unlikely. Analysts at the Commonwealth Bank of Australia consider gold as one of the strongest assets in the current market [2]. Most market watchers predict that gold could remain volatile but biased toward the upside, especially if more signs of Fed rate cuts or fresh global tensions emerge [2].
Vijay Valecha, Chief Investment Officer at Century Financial, stated that gold is set to attract more attention in the coming weeks [2]. Gold has already gained more than 25% this year, but remains less than $200 below its all-time high set in April [2].
In conclusion, Dubai gold prices have seen a notable upward trend over the past month, driven primarily by expectations of global interest rate cuts, persistent safe-haven demand, and improving consumer confidence followed by a swift buying response to rising prices [1][3]. The question for UAE shoppers now is whether to buy gold before prices climb further or wait for another dip.
References: [1] Reuters (2025). Gold prices surge to multi-month highs on rate cut expectations, safe-haven demand. Retrieved from https://www.reuters.com/business/finance/gold-prices-surge-multi-month-highs-rate-cut-expectations-safe-haven-demand-2025-07-01/
[2] Gulf News (2025). Gold prices in Dubai surge to Dh374 per gram. Retrieved from https://gulfnews.com/business/sectors/jewellery-diamonds/gold-prices-in-dubai-surge-to-dh374-per-gram-1.74385223
[3] Bloomberg (2025). Gold Gains as U.S. Job Data Fails to Deter Rate-Cut Expectations. Retrieved from https://www.bloomberg.com/news/articles/2025-06-30/gold-gains-as-u-s-job-data-fails-to-deter-rate-cut-expectations
[4] Khaleej Times (2025). Gold price in UAE: 22K gold crosses Dh370 per gram, 24K gold at Dh403.75. Retrieved from https://www.khaleejtimes.com/business/sectors/jewellery-diamonds/gold-price-in-uae-22k-gold-crosses-dh370-per-gram-24k-gold-at-dh40375
In light of increased expectations for interest rate cuts, particularly from the US Federal Reserve, and ongoing global uncertainties, gold news has reported a robust demand for gold as a safe haven investment [1][3]. Concurrently, the business sector has observed an surge in gold prices, with 22K gold in Dubai recently reaching Dh374 per gram, marking a significant increase in sports (financial) news.
