Dubai – Gold prices in Dubai have dropped to their second-lowest level this month, with 22K gold trading at Dh374.75 per gram, after US President Donald Trump confirmed there will be no tariffs on gold. Traders expect prices could fall further in the coming hours.
The local rate had touched Dh374 on August 1 after a sharp rise from Dh368.25 within 24 hours. Despite the decline, jewellery sales remain slow, with most UAE buyers opting for gold bars and coins over ornaments.
In the last 30 days, the lowest 22K gold rate was Dh365.25 on July 30. Retailers say prices would need to drop below Dh360 to revive jewellery demand. “Even regular jewellery shoppers are thinking of gold for investments,” said one retailer.
The current slowdown in jewellery sales is also being linked to high prices and summer travel by UAE residents.
Meanwhile, global gold prices are down to $3,354 an ounce, a drop of more than $50. Analysts believe a further dip to $3,300 could encourage jewellery buying.
The US-China decision to extend talks on tariffs could also ease bullion demand, putting further pressure on prices.
Silver Demand Rising
Silver is also attracting investor interest, with prices at $37.88 an ounce after steady gains over six months. Around 76% of IG clients are holding buy positions, though some are taking profits as prices approach potential resistance levels between $37.4 and $38.1.
