Dubai gold rate up by Dh3 as UAE shoppers search for summer discounts

Dubai: The drop in Dubai gold price seems to have ended for now – a gram of 22K gained just over Dh3 to Dh371.50. This is after two successive days of price drops, and well off the all-time high of Dh383.5 on June 13.

For now, the forecasts are for the Dubai gold rate to remain within the Dh368-Dh373 range as global markets and assets recalibrate after the ‘12-day war’ between Israel and Iran. A ceasefire was confirmed yesterday (June 24).)  Gold prices will remain fluid in the coming days, with many expecting that the local rate could settle around the Dh365 mark in the short term.

According to gold industry sources, anything near or under the Dh365 level would be rated as being favourable to shoppers under the circumstances. “There’s a feeling that the next 48 hours will show whether Dh370 plus levels can be sustained,” said a gold trader. “My feeling is that gold will drop closer to Dh360.”

At the same time, all of the leading jewellery retailers in the UAE have brought out heavy summer promotions to ease the cost factor for shoppers as much as possible. This is on top of the DSS 2025 gold raffles that will open on June 27, and where the entry price has been cut to Dh1,000. This will run through to end August.

“With the discounts and offers available for summer, shoppers can get anywhere up to Dh5-Dh10 savings per gram if they are buying now,” said a trader. “Now, if the Dubai gold rate falls to around Dh360, along with the summer promotions, there’s a fair deal of savings shoppers can get. But it’s all about timing their purchases right.”

UAE's 'summer of gold' offers

Malabar Gold & Diamonds is running a campaign until July 6 that will offer cash vouchers for jewellery featuring diamonds or precious gems and costing Dh3,000 and over. Plus, there is an exchange offer for old 22K gold jewellery and with zero deduction.

Offers from Joyalukkas focuses heavily on slashing making charges across the board. It means a 50% cut on making charges for purchases all the way up to July 6.  

At Tanishq, the campaign that’s on until June 30 offers shoppers ‘100% valuation and up to Dh25 per gram additional on gold exchange’, said a spokesperson. Also, in alliance with Lulu Hypermarket, shoppers get a ‘chance to win diamonds worth Dh2 million, where over 2,000 diamond pendants, weekly jewellery prizes, and grand diamond necklaces are given as giveaways’.

Kalyan - which has opened a further two showrooms in the UAE - too is focusing on trimming the making charges, by a flat 50% until June 30. (There are also draws where airline tickets can be won for up to 50 winners in Dubai.)

"We have explored more engaging and experiential formats of promotional campaign that create lasting value and memorable shopping moments," said Tawhid Abdullah, who heads the Dubai Gold & Jewellery Group.

"This summer season, our focus is on offering compelling deals across key jewellery categories, while still including a few exciting winning opportunities for lucky shoppers."

All that shoppers need more is for some more price drops. Will the Israel-Iran ceasefire bring that on?