Dubai: Gold prices likely to remain high after crossing record Dh400 per gram mark

Gold prices are expected to due to the , strong demand from central banks, and expectations around interest rate cuts, according to analysts and jewellers.

Gold prices reached a last week in Dubai and globally as prices surpassed Dh400 per gram locally and $3,300 worldwide.

The closed at $3,315.13 per ounce over the weekend. In Dubai, 24K closed at Dh400.75 per gram, 22K at Dh371.25, 21K at Dh356 and 18K at Dh305.

Citi Research also raised its gold prices forecast for the next three months from $3,200 per ounce to $3,500 after it crossed the $3,300 barrier.

“We think gold is likely to be in an extremely rare physical deficit at present, meaning prices need to rise in order to get stockholders to sell to clear the market,” analysts at Citi said in a note.

Alex Kuptsikevich, chief market analyst at the FxPro, said gold delved deeper into the territory of all-time highs last week, reaching above $3,350 per ounce on the spot market.

“Gold has been on the offensive since touching the 50-day moving average early last week. We view the latest rally as the completion of the correction from the late December spike. The upside potential allows us to expect quotes above $3,500,” he said.

Alex Kuptsikevich

Rohan Siroya, CEO of Siroya Jewellers Retail Division, said it is difficult to predict about gold prices and expects yellow metal prices "to stay here for some time".

Rohan Siroya

Chirag Vora, managing director of Bafleh Jewellers, anticipates gold to go higher.

Chirag Vora

Linh Tran, a market analyst at xs.com, said beyond trade tensions, the primary catalyst remains interest rate expectations.

“March CPI and PPI data from the US showed positive inflation trends, with both indicators coming in softer than expected. This has significantly increased the probability that the US Federal Reserve could begin cutting interest rates as early as September, or even sooner if upcoming data continues to weaken,” she said.

In his latest remarks, Fed chief Jerome Powell acknowledged a stronger-than-expected rise in March retail sales, but still emphasised that the US economy is showing signs of slowing.

She reaffirmed the Fed’s readiness to act should market conditions worsen.

“These somewhat dovish comments have further strengthened market conviction that a policy pivot may be on the horizon — a historically favourable backdrop for gold,” added Tran.

Finally, the global geopolitical landscape continues to support gold’s safe-haven appeal. The war between Russia and Ukraine shows no signs of de-escalation, while tensions in the Middle East are intensifying, with increasing risks of regional spillover. In an environment of rising geopolitical uncertainty, capital flows are increasingly shifting away from risk assets and into safe-haven channels such as gold.

“With the combined influence of trade risks, interest rate expectations, and geopolitical instability, gold is currently benefiting from both short-term inflows and long-term structural demand. Unless a major unexpected shift occurs, gold prices have a strong foundation to climb toward new highs in the coming period — especially if the Fed begins a rate-cutting cycle as the market anticipates,” said Tran.

Maria Agustina Patti, financial markets strategist consultant to Exness, said trade tensions remain elevated following a series of mixed signals from the White House.

“Although markets had hoped for a potential reset in US-China trade relations, Beijing made clear that any renewed negotiations would depend on greater consistency in US messaging and respect for its political red lines. This uncertainty is likely to keep safe-haven demand elevated,” added Patti.