The price of gold in Dubai has risen to its highest level in ten days, prompting many residents to hold off on jewellery purchases ahead of the summer travel season. On Thursday morning, the 22-karat rate stood at Dh375.25 per gram, marking a sharp increase from earlier this week. The 24-karat price also climbed, crossing the Dh400 mark to reach Dh405 per gram.
Retailers across the UAE report that demand has weakened as buyers show reluctance to spend at current price levels.
“Any time gold goes over Dh370 per gram, we see a clear drop in walk-in purchases,” said one long-time gold retailer in Dubai’s Gold Souk. “Customers are waiting for prices to settle below that point.”
The current rate is the highest since June 2, when 22K gold touched Dh376.5. In regional markets, similar trends are visible. Saudi Arabia is reporting a 22K rate of Dh380 per gram, while Indian prices for a tola (approximately 12 grams) have crossed Rs107,440.
Global markets are also experiencing heightened activity. The price of bullion has surged by over $50 in recent sessions, bringing gold to approximately $3,370 per ounce. Analysts warn that continued geopolitical instability and trade-related uncertainty could push it further, with some forecasting a possible move toward the $3,400 level.
Gold last peaked in April, reaching a record $3,500 per ounce amid tensions over U.S. tariff policies.
In Dubai, jewellers say customers are reacting to the price fluctuations by either postponing purchases or opting for lighter, lower-weight items. The hope among both buyers and retailers is for prices to dip back below Dh370 per gram in the coming days.
Until then, the gold market in the UAE remains cautious, with many shoppers shifting back to a “wait-and-watch” mode.
