Gold Hits Record Highs in Dubai as Analysts Raise Price Forecasts

Could the Yellow Metal Surge to $3,400? Experts Weigh In on Market Trends

Gold prices have shattered records, surpassing $3,100 per ounce and sparking fresh optimism among investors and analysts alike. With global uncertainties and strong central bank demand driving prices higher, some experts now believe the yellow metal could reach $3,400 in the coming months.

Gold’s Meteoric Rise: A New Milestone

Gold’s impressive rally began in mid-March when it first crossed the $3,000 mark. Since then, analysts have steadily raised their forecasts. Goldman Sachs has now set a price target of $3,300 per ounce by the end of 2025, while Citi projects a short-term high of $3,200.

However, not all analysts are bullish. Some caution that gold’s rapid ascent has created an overbought market, making a correction likely. According to Alex Kuptsikevich, Chief Market Analyst at FxPro, gold remains in “uncharted territory,” and while $3,400 is a possible target, extreme overbought conditions could trigger a short-term pullback.

Dubai Gold Prices Soar to Record Highs

The effects of gold’s global rally are being felt in Dubai, where prices have reached unprecedented levels. On Tuesday, 22K gold crossed Dh250 per gram for the first time, with the Dubai Jewellery Group reporting the following rates:

24K: Dh379 per gram
22K: Dh350.75 per gram
21K: Dh336.5 per gram
18K: Dh288.25 per gram

Since the beginning of 2025, gold has gained approximately Dh62 per gram, making it one of the most attractive investment options amid global market volatility.

Key Drivers Behind Gold’s Surge

Several factors are fueling the historic rise in gold prices:

Economic and Geopolitical Uncertainty – Rising tensions in the Middle East, conflicts in Europe, and instability in various global regions have led investors to seek gold as a safe-haven asset.
US Tariff Concerns – Uncertainty surrounding new trade policies under President Donald Trump has propelled gold higher, as investors hedge against potential market disruptions.
Federal Reserve Policy – Expectations of interest rate cuts by the Federal Reserve have increased demand for gold, as lower rates reduce the opportunity cost of holding non-yielding assets.
Central Bank Purchases – Countries like China and India continue to bolster their gold reserves, adding to the metal’s strong momentum.

What’s Next for Gold?

While analysts remain optimistic about gold’s long-term trajectory, short-term corrections cannot be ruled out. Linh Tran, a market analyst at xs.com, emphasized that financial market volatility and investor risk aversion are driving capital into gold. If geopolitical risks persist and central banks continue accumulating reserves, gold could maintain its upward trend.

However, should President Trump delay new tariff policies or global tensions ease, profit-taking could lead to a temporary pullback. Despite potential corrections, gold’s status as a hedge against inflation and market instability remains unshaken.

As investors closely watch economic and geopolitical developments, the question remains: will gold reach the $3,400 milestone? If current trends persist, the answer may come sooner than expected.