Gold shoppers across the UAE are choosing to hold back on purchases as the Dubai Gold Rate for 22-karat gold remains close to Dh360 per gram, sparking speculation on whether prices could fall further.
On Tuesday, the rate stood at Dh360.25 per gram, slightly lower than Dh361.50 on Monday, yet not enough to spark a buying rush. Compared to the weekend high of Dh371, the current rate reflects a Dh11.25 drop, but retailers report minimal improvement in sales.
“Even after the price dropped this week, most shoppers remain cautious,” a gold retailer said. “There’s a clear sense that many are waiting for the market to settle further before buying.”
Consumer Sentiment: Waiting for Dh350
Many shoppers believe the current price is still on the higher side, and some are holding out in hopes of a drop to around Dh350 per gram or even Dh345. According to retailers, such a decline may be necessary to reignite strong consumer interest.
Retailers also note a decline in tourist purchases, which typically supplement local demand.
Jewellers Offer Exchange Promotions
To counter slowing sales, several jewellers have introduced gold exchange offers, encouraging customers to trade old jewellery for new purchases. However, experts say such schemes usually work best in rising markets, not during uncertain or declining phases.
“Exchange deals attract attention when prices are climbing. Right now, people expect gold to fall further, so they’re in no rush to act,” said another Dubai-based jeweller.
Seasonal Spending Shifts
With the summer holiday season approaching, many UAE residents are directing their funds toward travel planning and ticket bookings, leaving discretionary purchases like jewellery on hold.
“Gold is not the priority right now for most households. Unless prices fall noticeably, shoppers are likely to wait until the end of the month or beyond,” a retailer added.
International Gold Trends
On the global market, gold was trading at $3,230 per ounce as of Tuesday, posting a modest $5 gain for the day. Despite a surge in April, much of the $100+ increase over the last month has now been reversed, contributing to the uncertain outlook.
Market analysts suggest that if gold prices drop closer to $3,100 an ounce, it could lead to a more pronounced decline in local rates, possibly bringing Dubai's 22K price near the Dh350 mark.
Outlook: Time to Wait or Buy Now?
With gold prices showing signs of volatility and shoppers watching the market closely, jewellers may have to wait longer to see a significant return in foot traffic. For now, the wait-and-watch strategy appears to be the most popular choice among UAE gold buyers.
