UAE gold shoppers could finally get some relief as retailers across the country roll out seasonal offers, including direct discounts and cashback schemes, to offset the effects of stubbornly high gold prices.
With the 22-karat gold rate hovering at AED 376 per gram, a marginal drop from AED 378.5 a day earlier, retailers are banking on summer promotions and the upcoming Dubai Summer Surprises (DSS) to stimulate demand.
Gold Offers Heat Up for Summer
From cashback incentives to direct price cuts of AED 2–5 per gram, gold and jewellery retailers are pulling out all the stops to attract price-conscious buyers. “Anything around AED 380 is still considered a no-go zone for many shoppers,” said a leading jeweller at the Dubai Gold Souq. “But if today's global trends continue, we could see a further drop in local gold prices by another AED 1–2 per gram.”
The DSS 2025 campaign, set to begin next week, is expected to play a significant role in reviving footfall at major gold retail hubs. Retailers are hopeful that combined incentives will change the current sentiment, which has been subdued due to sustained price resistance.
Global Gold Prices Under Pressure
In recent trading hours, international bullion prices dropped sharply by over $40 to $3,349 per ounce. Analysts note that if this downward trend continues, it will directly influence the Dubai gold rate by day's end.
The sudden drop has shifted the narrative within the industry. Only a week ago, predictions centered around gold pushing toward the AED 400 mark. However, a recent Citi report forecasting a 20% decline over the next year, possibly bringing gold down to $2,800 an ounce, has forced many to reassess.
Shopper Sentiment May Turn
The industry is now in a wait-and-see phase. Retailers are cautiously optimistic that a combination of lower prices, attractive discounts, and high-profile seasonal promotions will tempt buyers back into stores.
“If price drops continue and shoppers recognize the savings, we could see a major rebound in demand,” added a senior retail executive.
For now, it’s a delicate balance between global market dynamics and consumer confidence. But with summer in full swing and incentives on the table, UAE’s gold trade is bracing for a hopeful turnaround.
