With Dubai gold prices holding steady at around Dh375 per gram (22K), many UAE residents are choosing to sell their gold for quick cash before heading off on summer holidays.
According to retailers in Dubai’s Gold Souq, there has been a noticeable rise in residents selling gold outright for money, rather than exchanging it for new jewellery, a trend that usually happens when they return to their home countries. This year, however, some are choosing to sell before they travel.
“This was unusual,” said one long-time gold retailer. “We’re seeing people come in just days before flying out, selling small quantities to get extra cash. Some of them even did this on Monday.”
Several of these sellers are heading straight to nearby exchange houses to remit money home. With the US dollar regaining strength, Asian expats are able to send more home from the same dirham amount, making the timing ideal for cash conversion.
While this type of gold-for-cash sale still represents a small share of daily transactions, it has happened during similar price peaks in the past. During COVID-19, many residents and small business owners also sold off gold to manage through job losses or cash shortages.
Currently, bullion remains above $3,350 per ounce, with slight fluctuations toward $3,375. Though demand for new gold jewellery has slowed, the resale activity is giving smaller gold retailers a temporary lift.
Retailers believe the buying season may have ended for now, with many shoppers choosing to wait for more stable prices before returning to the market.
