Dubai gold price drops to 'shopper-friendly' level - can it go down to even Dh360?

Dubai: After 10 days, there is some relief for UAE gold shoppers.

The Dubai gold price has dropped by Dh3.25 a gram this morning to Dh366.75 for 22K, which was the same level back on June 30. In between, the local gold price had stuck to Dh370 and more, and had seriously cut into demand for jewellery.

The current rate is just Dh1.25 higher than the 30-day low of Dh365.5 – and that was the price level which drew a fairly sizable increase in demand. “All shoppers want to see is gold price stabilize at Dh360 or just over levels, and they will come back,” said a jewellery retailer.

“Anything over Dh370 was becoming too much of a mental block for shoppers to engage, even if retailers like us were offering price lock-ins, discounts on making charges, and even options to buy diamond jewellery at much discounted prices.”

Based on shopper trends in the first six months of 2025 - when gold prices have kept shooting higher - anything in the Dh350-Dh360 a gram range is what a typical gold buyer will consider looking at.

"If price of 22K holds around Dh365-Dh366, we can hope for a moderate rise in shopper activity," said a retailer. "Anything under that will be when we can expect a significant levels of shopper interest."

If these price levels continue, expect UAE jewellers to extend summer promotions, with a specific focus on discounts to gold jewellery. (There is even talk about limited-time zero making charges offers on older collections, but there are no confirmations yet whether this will happen.)

In the global markets, bullion is trading at just under $3,300 an ounce. This price needs to fall to $3,340-$3,350 levels for the Dubai gold price to show up at Dh360 or so.