As the UAE’s gold sector approaches one of its most anticipated sales weeks around Eid Al Adha, shoppers and jewellers are holding their breath — but not for the usual reasons. Gold prices in Dubai remain just shy of their all-time high, causing hesitation among consumers and uncertainty for retailers banking on festive spending.
As of Monday morning, 22-karat gold is trading at Dh374.75 per gram, while 24K gold is priced at Dh404.75, leaving only a slim margin below the record Dh381.75 per gram set previously.
This price point is proving to be a psychological barrier for many shoppers, especially those who traditionally invest in gold jewellery during religious holidays or as part of travel purchases.
“Close to Dh375 levels has taken the wind out of shoppers’ plans to buy gold,” said a gold jeweller in Dubai’s Gold Souq. “We’ve been offering exchange deals, but interest has been lukewarm so far.”
Over the past 48 hours, movement at gold retail outlets — particularly among tourists — has been subdued, traders confirm. The mood contrasts sharply with the usual pre-Eid buzz that the gold sector typically experiences in Dubai.
Retailers Hoping for a Correction, But Hopes Are Slim
According to gold traders and bullion experts, any major price relief before Eid may be unlikely. One senior dealer put it plainly: “A drop back to Dh350-Dh360 levels is not expected anytime soon. At best, we might see rates settle between Dh365 and Dh370 per gram in early June, but even that depends on how international markets behave.”
The industry is watching global cues closely. Much of the recent movement in gold prices has been linked to uncertainty in the U.S. economy and geopolitical statements, including those from President Trump, which continue to stir market volatility.
“Everything now hinges on what comes out of Washington and how the dollar performs,” the dealer added.
Recent Spike Caught Everyone Off Guard
Just two weeks ago, the price hovered near Dh350 per gram, a rate many shoppers considered ideal. The sudden upward swing has left both consumers and retailers scrambling to reassess their plans.
“At Dh350, customers were more relaxed — they saw it as a fair level for investment or gift purchases. Now, at nearly Dh375, there’s hesitation,” said a long-time retail executive. “We’re seeing fewer bulk orders and more price inquiries than actual transactions.”
Will Early June Bring Relief?
Retailers are still holding out for a dip in prices before the key week ahead of Eid. For many in the trade, that short window could make or break their summer quarter.
“A minor correction to even Dh365 could pull shoppers back,” said a store owner at a major mall outlet. “Everyone’s waiting, watching — and hoping the market throws them a small win.”
Until then, the gold trade in Dubai remains cautious. Offers are being rolled out, display inventories are being refreshed, but consumer confidence is still tied to the price ticker. For now, both sides of the counter are hoping the market softens, if only slightly, to let the Eid gold rush shine once again.
