DUBAI – Gold prices in Dubai continue to hover above the Dh370 mark, with the current rate for 22K gold at Dh372.5 per gram, slightly below the Dh374 recorded on July 1. Yet, despite high bullion prices, retailers are seeing brisk business, particularly in diamond jewellery, where discounts are reaching up to 75% this summer.
The latest Dubai Summer Surprises (DSS) campaign has sparked a wave of interest among jewellery shoppers, many of whom are turning to diamonds instead of waiting out gold price dips. Retailers across the UAE, especially in the Dubai Gold Souk, are offering steep markdowns on diamond collections, drawing in customers looking for luxury at competitive prices.
“Consumers are still seeing value at current gold levels, especially compared to earlier highs above Dh380,” said Vinay Jethwani, Partner at Meena Jewellers. “But it’s diamond jewellery that’s really drawing interest. Our 75% off promotion is driving solid sales, and the response has been very encouraging.”
Old collections, new value
While some of the discounted diamond sets may come from older inventories, customers are more focused on value and aesthetics than product cycle. Retailers are also keeping making charges competitive, ensuring overall affordability remains attractive.
Shoppers like Pravin Pawar, who typically time purchases around seasonal campaigns, say the promotions and raffles create added incentive. “If there’s a festival, raffle, or major offer, I’m more inclined to make a purchase,” he said.
The DSS gold raffle remains a popular draw. Spending Dh1,000 or more on gold or diamond purchases gives shoppers entry into weekly prize draws. “Some shoppers simply want to try their luck,” noted one retailer. “They’d rather spend Dh1,000 on real gold or diamonds and get a raffle ticket than walk away empty-handed.”
Gold Souk footfall holds steady
Despite the high price point, footfall at the Dubai Gold Souk and its extension remains strong, especially during the evening hours. Retailers say it’s a sign that UAE residents still view gold and diamond jewellery as tangible investments, especially when tied to a promotional opportunity.
As global gold prices remain sensitive to economic indicators, including upcoming U.S. jobs data, Dubai’s jewellery market continues to capitalize on a mix of smart marketing, timely discounts, and strong consumer sentiment to sustain demand, even in a high-price environment.
