Dubai – Gold prices in Dubai remain at elevated levels, with 22K trading at Dh376.25 per gram, one of the highest in the past month. But what has shoppers and jewellers more concerned are forecasts suggesting bullion could surge to new record highs.
Swiss bank UBS has raised its gold price forecast to $3,600 an ounce by March 2026, $100 above its previous estimate. The current record stands at $3,500. If the forecast materializes, Dubai gold prices for 22K could climb to Dh430–Dh440 per gram, according to local retailers.
“Each time prices cross Dh360, UAE shoppers cut their gold jewellery purchases sharply,” one retailer said. “If we reach Dh430, demand will be hit hard for a second year.”
Gold briefly spiked above $3,370 an ounce on Friday after U.S. Federal Reserve Chair Jerome Powell hinted at a potential September interest rate cut. Analysts warn that a weaker dollar could further push investors into gold, adding more pressure on retail buyers.
Some UAE shoppers, especially those buying jewellery for weddings, are choosing to advance their purchases to avoid steeper prices later. “They have seen the reports of higher forecasts and don’t want to take chances,” a jeweller added.
Market watchers say the next trigger will be the Fed’s mid-September meeting. Any rate cut could drive bullion back toward $3,400 levels, deepening concerns for retailers already grappling with reduced consumer demand.
