The Dubai gold rate opened the new week at Dh367 per gram for 22-karat gold, offering cautious optimism to shoppers hoping for a deeper price correction. With peak summer travel and jewelry buying season approaching, all eyes are on whether the rate can slip below Dh360, a psychological threshold that could reinvigorate retail demand.
Despite a marginal drop from Dh371.25 last Friday, the mood among gold buyers remains tempered. The past month has seen global bullion prices surge by $130 an ounce, and over the last six months, the increase has been a staggering $758 per ounce, making gold purchases heavier on consumer wallets.
“We are seeing short-term corrections, but gold prices ultimately have a way of heading higher,” said Chandu Siroya, Managing Director of Siroya Jewellers and board member of the Dubai Gold & Jewellery Group. “Buy at every dip — that’s been the strategy among UAE shoppers.”
Shoppers Await Dh350–Dh360 Levels
With 22K rates hitting Dh381.75 at their peak just last week, today’s Dh367 level may seem like a relief. Yet for many shoppers, there’s growing price fatigue, especially with steady high rates seen throughout April and early May.
Retailers believe that a more substantial decline — closer to Dh355 or below — will be necessary to draw buyers back in force.
“Shoppers are now in wait-and-watch mode,” said one retailer. “A price drop below Dh360 could be the tipping point before the summer buying rush.”
US-China Talks Fuel Downward Pressure on Gold
The current downward pressure on global gold prices is being attributed to positive signals emerging from US-China tariff negotiations taking place in Switzerland. Investors are reacting to the de-escalation narrative, which has dampened demand for gold as a hedge against macroeconomic instability.
As of Monday morning, bullion has dropped nearly $70 to $3,271 an ounce, and analysts suggest that further dips could be on the horizon if trade talks continue to progress.
Price Drop May Be Temporary
Even with current dips, experts caution that gold’s long-term trajectory remains bullish, driven by ongoing inflationary pressures, central bank purchases, and global geopolitical uncertainties.
Retailers are urging consumers to take advantage of temporary lows, especially those planning major purchases ahead of wedding seasons, holidays, and summer travel.
“If prices hold below Dh360 for even a few days, we could see a sharp uptick in gold retail activity,” another industry source said. “But any fresh negative news from global markets could quickly reverse these gains.”
Outlook: Steady But Watchful
While immediate market sentiment has turned slightly favorable for gold buyers, the industry remains watchful, balancing optimism over global diplomacy with the reality of historically strong gold fundamentals.
For now, the question remains: Will Dubai gold rates dip low enough to ignite shopper enthusiasm before summer sets in? That depends as much on Swiss negotiations as it does on the pulse of local demand.
