Dubai gold rate show no signs of dropping 'shopper-friendly' levels - for now

UAE gold trade hopes for Eid buying from Saudis, tourists to make up for poor May sales

Last updated: May 27, 2025 | 07:20

Manoj Nair, Business Editor

2 MIN READ

When will shoppers return? It has been an extremely poor month for gold sales during May. Can things change in early June for Eid?

Bloomberg

Dubai: The UAE gold market is entering one of the most crucial sales periods of the year with the Dubai gold rate still sticking to too-pricey Dh370 plus levels. A lot thus depends on whether there could be any drop in prices from these levels and whether Saudi and other tourists in the UAE for the Eid holidays end up buying gold and jewellery here.

The local gold market is expecting a significant inflow of visitors from Saudi Arabia over the first week and weekend of June. “You look at today’s Saudi gold rate of Dh380 a gram for 22K and the Dubai gold rate of Dh372.5, and that’s a reason to hope for better sales next week,” said a jewellery retailer who has operations in Saudi Arabia and UAE. “I have already received a few bookings for big-ticket jewellery purchases from a couple of regular Saudi visitors to Dubai.” (Saudi Arabia also has the 15% VAT.)

Also Read: Dubai gold rate 'too close' to all-time high for shoppers

Will Eid sales compensate for the demand since May 20 is another matter. Gold sales on a daily basis continue to drop since the Dubai gold rate first shot up to Dh367.25 from Dh360.25 within a day on May 20 and then proceeded gradually to again push through to Dh370 and over. (During this period, the highest has been the Dh374.75 on May 24 and 25.)

Jewellery industry sources say they have been talking to their contacts in the local hotel sector to get some indication of bookings by Saudi visitors for Eid. "Even a moderate rise in Saudi visitor numbers will have an immeasurable boost for gold sales, especially when it comes to higher priced purchases."

Gold sales tank in May

“The last 7 days have been the second weakest this year, after the earlier one in early April when gold had shot up to Dh381 levels when the US tariffs were first announced,” said a jeweler. “The current gold price spike means we have seen a 20%-25% reduction in pre-holiday spending. This has made the situation extremely difficult.

“The UAE gold business will hope to recover some ground if demand returns during early June for Eid.”

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.