Gold prices in Dubai dipped early Tuesday to Dh374.25 per gram for 22K, down from Dh377 the day before, as markets reacted to news of a possible Israel-Iran ceasefire announced by former U.S. President Donald Trump.
Despite the drop, UAE gold retailers say the current rate is still not enough to bring shoppers back in large numbers.
“If the price drops to between Dh365-Dh370, shopper turnout during Dubai Summer Surprises (DSS) will improve,” said one major gold dealer.
This year’s DSS promotion kicks off on June 27, with organizers lowering the entry point for the popular gold raffle to Dh1,000, in a bid to revive interest.
Will a Confirmed Ceasefire Drive Prices Lower?
Gold typically surges during global uncertainty, and prices have remained elevated since the Israel-Iran conflict began on June 14. Any confirmation of a ceasefire could ease investor demand for the safe-haven metal, causing prices to fall further.
However, analysts caution that gold may still remain high due to broader global pressures, including elevated U.S. tariffs and sustained investor demand. Global gold prices are currently hovering between $3,200 and $3,400 per ounce, keeping local rates well above Dh370.
“Shoppers will return only if there is a sustained price drop,” said a Dubai-based market analyst.
