Dubai gold price hits 50 fils from all-time high - then drops

Dubai: At Dh383.25 a gram, the Dubai gold rate is just 50 fils from equaling its highest ever point, as global uncertainties push jewellery prices beyond the reach of most shoppers. The current all-time high of Dh383.75 for 22K was set in late April.

It comes even though US President Trump talked up a new trade deal with Japan, which locks in import tariffs at 15% rather than the 25% if a deal hadn’t happened.

By 9:20am, the Dubai gold price had softened to Dh381.75, but nowhere enough to something shoppers will be comfortable with.

"The overall global environment is not helping what shoppers want to see from gold prices," said Rohan Siroya of Evermore Jewellers. "The US trade deal with Japan could help settle market fears, but there still needs to more of such pacts for gold to settle down."

For the better part of the last 14 days, the Dubai gold price was around the Dh374 mark, but then started to push higher from this week on. The return to Dh383 levels is part of that.

As for the UAE gold and jewellery market, shopper traffic is down on account of the high prices as well as the fact that many residents are on their holiday trips.

Retailers hope now is that gold might finally settle down after the August 1 deadline imposed by Trump for trade deals to be struck.

If that doesn't materialize, expect more such price gains.