Heat olive oil in a pan over medium heat. Add chopped onions and a pinch of salt. Cook, stirring occasionally, for about 15-20 minutes until onions are golden brown and caramelized.
Remove caramelized onions from the heat and let them cool slightly.
In a mixing bowl, combine sour cream, mayonnaise, garlic powder, onion powder, pepper, and sugar (if using). Mix well.
Fold in the caramelized onions and fresh chives into the sour cream mixture.
Cover the dip and refrigerate for at least 1 hour or overnight for the best flavor.
Serve the dip chilled with chips, crackers, or fresh veggies.