Dubai gold rate drops - can this fire up Eid Al Adha demand?

Dubai gold retailers to line up zero deduction charges, 'half-back' offers

Last updated: May 23, 2025 | 07:34

Manoj Nair, Business Editor

2 MIN READ

Will the Eid Al Adha sales provide enough of a demand lift for UAE gold sales in June? For now, shoppers are looking at prices under Dh370 a gram.

Ahmed Ramzan/ Gulf News

Dubai: The Dubai gold rate has slipped below Dh370 a gram, which could also be the levels that shoppers will be looking at over the weekend. On the face of it, this is partial relief after gold prices threatened to shoot closer towards Dh380 yesterday.

The weekend and the week after can be crucial for the local gold market, with the Dubai Gold & Jewellery Group announcing a series of promotions tuned towards the Eid Al Adha break. The promotions – which run June 2 to 9 – will include zero deduction on any gold exchanges as well as ‘half-back’ offers.

Also Read: Dubai gold rate shoots past Dh370 - should shoppers be exchanging old gold? Or hold?

The sentiment within local gold market circles is that even if there is a 20%-25% sales boost from current levels, that would be a major win. In this regard, the Eid Al Adha gold promotions address concerns among shoppers that current rates may be too high for them.

Or just sell the gold for cash

If it’s not an exchange that shoppers are interested in, there is the ready cash they can get for their old gold holdings.

According to Karim Merchant, CEO and Managing Director of Pure Gold, “Along with testing for purity of the metal, we place the most competitive offer to buy gold based on the going price. This is a straightforward, documented process after complying with the local authority requirements."

This is the rule of thumb when it comes to gold-for-cash decisions. If gold prices are in the Dh10 a gram range from the peak price during a specific 30-60 day period, then that would make for the right time to sell.

"A lot of gold owners have made mistakes thinking it was the right time to sell and found they could have done better if they waited," said a trader. "I am talking about those who do not need spare cash immediately for some urgent requirement.

"For gold investors, timing your entry and exit are absolutely important."

Jewellery industry sources say that at all times shoppers should hold all their invoices for as long as possible to help with the exchanges or sales.

So, soon enough, this Eid Al Adha, residents in the UAE will get to decide whether to buy, exchange or sell gold.

There is also a fourth option, they could just hold what they have for the time being.

Manoj NairBusiness Editor

Manoj Nair, the Gulf News Business Editor, is an expert on property and gold in the UAE and wider region, and these days he is also keeping an eye on stocks as well. Manoj cares a lot for luxury brands and what make them tick, as well as keep close watch on whatever changes the retail industry goes through, whether on the grand scale or incremental. He’s been with Gulf News for 30 years, having started as a Business Reporter. When not into financial journalism, Manoj prefers to see as much of 1950s-1980s Bollywood movies. He reckons the combo is as exciting as it gets, though many will vehemently disagree.