Gold prices in Dubai remain steady at Dh360 per gram for 22K gold, but many shoppers are choosing to hold back on purchases, hoping for a further drop ahead of the summer holidays.
Despite a noticeable decline from earlier this month—when rates briefly touched Dh371—consumer interest in gold jewellery has softened. Retailers across the city report subdued walk-in traffic and fewer pre-holiday buyers.
“There is a clear drop in jewellery purchases,” said a Dubai-based retailer. “While we still see interest in gold coins and bars for investment, shoppers are holding off on jewellery unless the price softens further.”
This sentiment is reflected in reduced demand for gold exchange offers and hesitation to commit to new purchases, even though some consumers have opted to continue or increase monthly instalment plans on existing orders.
The Dubai gold rate has hovered in the Dh355–Dh360 range over the past week, with many residents now expecting a possible drop toward Dh350 per gram. Retailers suggest that this psychological price barrier has become a key reference point for buyers deciding whether to move forward.
“In an ideal scenario, the drop from Dh370-plus levels to Dh360 should have encouraged buying,” another retailer noted. “But consumers are thinking bigger — many believe there’s still room for another Dh20–Dh30 reduction.”
Gold dealers and analysts aren’t dismissing that possibility. Market watchers say that a shift in the global economic mood—especially any signs of stability in the U.S.—could trigger a fall in gold prices.
Daniela Hathorn, Senior Market Analyst at Capital.com, pointed out that easing geopolitical tensions, particularly between the U.S. and China, have reduced the appeal of gold as a safe-haven asset. “Unless these tensions re-emerge or President Trump revives confrontations with trading partners, gold may remain under pressure,” she said.
The recent downgrade of the U.S. credit rating by Moody’s briefly disrupted downward momentum in gold prices. But unless renewed instability surfaces, analysts say that price corrections are likely, which could bring the Dubai rate closer to consumer expectations.
Until then, many UAE residents are prepared to wait it out, adopting a “watch-and-wait” approach as they hold off on purchases until the price shows signs of meaningful movement.
