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

Dubai: Gold’s back in surge mode – and it’s all showing up in the Dubai gold rate’s push above the Dh370 a gram mark for 22K. The 24K version has already gone past the Dh400 mark, trading at Dh402.5.

Shoppers in the UAE are back to thinking whether it makes any sense for them to exchange old gold for new. Or even sell their gold to pick up some cash – serious cash at that.

But the dominant mood is to ‘hold’, say gold retailers. “It’s all quiet now when it comes to new gold jewellery sales,” said a jeweler. “But I do believe many resident-shoppers will be tempted to sell part of their jewellery or gold coins/bars, especially those with holiday spending plans.”

But gold’s latest surge has put paid to one hope many UAE shoppers were nursing – that the Dubai gold rate will settle closer to Dh34-Dh350 levels, which at various points last week did seem a distinct possibility.

Now, a return to Dh380 is what shoppers out there are fearing. Because end of May have usually been when UAE residents picked up gold jewellery ahead of their holiday travel.

For the upcoming Eid Al Adha promotions, the Dubai Jewellery Group will offer zero-deduction gold exchange and 'half-back' schemes for shoppers. This will run from June 2 to 9 and available at more than 100 outlets.

According to Laila Suhail, board member and Chairperson of Marketing Committee at Dubai Jewellery Group (DJG), said: “We’ve carefully organised this promotion to offer not just exceptional value, but also pieces that express the deep cultural significance of this cherished occasion.

"Every purchase becomes a meaningful gift that carries both emotional and investment value.”