Gold prices in Dubai kicked off the week with a sharp rise, dashing shopper hopes for lower rates. The 22K gold rate is now Dh365 per gram, up Dh3.5 from May 1, while 24K stands at Dh394. Just last week, rates had dipped to Dh359, fueling optimism for a further drop.
“Buyers were expecting a slide to around Dh350–Dh355, so this sudden reversal could hurt sales,” said a local jeweller. “Even tourist demand may slow, unless wedding buyers go ahead with their plans.”
Market analysts, however, are urging buyers to wait until Thursday, when the U.S. Federal Reserve is expected to announce its latest decision on interest rates. A rate cut could pull gold prices back down, offering a better window for purchase.
Gold is currently trading at $3,266 an ounce, up nearly $30 globally. Despite President Trump’s push for lower interest rates, uncertainty remains ahead of the Fed’s meeting.
Retailers in the UAE are also eyeing a potential demand boost in June, as residents prepare for holiday travel — a period traditionally associated with increased gold purchases and resale opportunities in home countries.
