Dubai gold rate: Shoppers should 'just wait' after latest price surge

Dubai: A Dh11.5 jump in the Dubai gold price in 24 hours says everything about the return of volatility to the gold market – and once again threatening to come closer to the all-time high of Dh381.75 a gram for 22K struck last month.

The current price for 22K is Dh376.5, while that for 24K has firmed up to Dh406.75.

The message to shoppers? “Just wait,” is how jewelers are seeing it. “Unless there is a real reason to purchase some gold right now, shoppers should wait,” said one retailer. “Whether they are looking for lightweight or 18K gold, if they want to delay a purchase, they should.

“From a shopper’s perspective, there is no reason why he or she should not wait – an over Dh10 price jump is the only reason they need to delay."

If shoppers are looking to make a token gold purchase to mark Eid Al Adha celebrations, then they should look for offers that come up with verifiable discounts on making charges. Or they should go for diamond jewellery which are less prone to wild price swings.

The main reason why gold prices are seeing renewed turmoil is because of the spectre of more US-China spats over import tariffs. A truce that was struck in a recent round of talks held in Geneva is seemingly coming under pressure.

That has led to more concerns over US inflation and whether the Fed will end up delaying further interest rate cuts.

For gold shoppers in the UAE not looking at geopolitics, all they need to do is wait for some cues to suggest the price might return to under Dh370 a gram levels.