Dubai gold price has just shot back to over Dh370 - will it hurt summer sales?

Dubai: Gold is up – again.

The Dubai gold price for 22K gained just over Dh3 a gram overnight to Dh370 – and the first time since June 23 that it’s gone back to this level. The sudden price rise comes just as shopper activity was starting to show up again at Dubai Gold Souk and jewellery stores elsewhere.

At 2:30pm, the Dubai gold rate is Dh373.

Shoppers have not reacted favorably whenever the local gold rate has gone to Dh370 or more. And jewellery retailers are expecting the same sentiment today as well if the Dh370 levels persist.

“Only the Dubai Summer Surprises 2025 gold raffle draws offer some hope of generating demand,” said a jeweler. “It’s becoming more and more clear that the decision to reduce the raffle entry price to Dh1,000 from Dh1,500 was the best decision. Especially when gold prices are volatile on a day-to-day basis.”

According to other gold retailers, there were lots more shoppers willing to book their next purchase in advance and thus lock in prices. Most of the price lock-ins happened at Dh365.75 levels – and these shoppers probably made the right decision based on what’s happening today with the sudden Dubai gold rate spike.

Will this gold price spike persist?

There were signs that bullion prices were rising again from yesterday afternoon itself. Many were taken by surprise because nothing much had changed in the global economy to support such an increase.

There were trade deals happening between the US and major partners. The Trump budget was going through the Senate with enough support. And there were no major concerns on the geopolitical front.

Yet, gold is now back to over $3,300 an ounce, after a gain of over $40 by 7am today.