The UAE gold market is heading into one of its most critical sales periods with prices still hovering above Dh370 per gram for 22K gold, stalling demand and forcing retailers to pin their hopes on incoming Eid tourists from Saudi Arabia and other Gulf countries.
Jewelry traders report that May has been among the weakest months for gold sales so far this year, with daily purchases dropping sharply after rates jumped from Dh360.25 to Dh367.25 on May 20, and continued climbing to a recent high of Dh374.75.
“The past week has seen a 20%–25% drop in pre-holiday gold spending,” said a leading Dubai jeweler, citing the price surge and the lack of promotional buying sentiment.
Retailers are now closely monitoring Saudi visitor bookings, as the local price still offers a comparative edge. With Saudi gold priced at Dh380 per gram and a 15% VAT in place there, Dubai remains an attractive shopping hub.
Some high-end bookings have already come in from regular Saudi clients, and local gold traders are in active coordination with the hospitality sector to track potential tourist footfall during Eid.
Still, uncertainty lingers over whether the Eid period can offset the sluggish May sales, with retailers awaiting any potential price softening that could entice last-minute buyers.
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