UAE gold shopping hits pause at near Dh375 price - it could go higher

Dubai: The Dubai gold price remains stuck on the higher levels at Dh374.5 a gram for 22K, and looks set to continue a dull period for jewellery shopping in the UAE. This is the same price that was there over the weekend, which meant that shopper visits were down by 30%-50% at some stores in the Dubai Gold Souq.

“Every time the Dubai rate pushes back to Dh375 or so, shoppers hit a ‘pause’,” said a retailer. “Shoppers will not be swayed by talk of gold prices shooting up higher from these levels. They will prefer to wait.”

The highest price in the last 30 days was the Dh383 on June 15. Based on trends so far today, Dubai gold price could still firm by a Dh1 or Dh2 as bullion trades react to the fresh outburst of global concerns related to US trade tariffs if no major deals are agreed upon by August 1, which is President’s cut-off date (for now).

The latest worry propelling gold’s rise has to do with Trump’s statement about tariffs of 30% on the EU if a deal does not get done – and the French President Macron talking about retaliatory tariffs.

“Fortunately, the peak season for gold buying in the UAE is over, and all that we are seeing now are some impulse shopping for jewellery, which happens even when prices are at a peak,” said a retailer. “The other bit of shopping has to do with DSS gold raffles, but that too came down after the rise from Dh370 levels to Dh374.”