Dubai gold rate sticks to high levels - will DSS raffles bring back shoppers?

Dubai: Starting June 27, shoppers will have another chance to add to their gold holdings if they want – and with the additional incentive of picking up some prizes through the popular raffle draws. This will come through the Dubai Summer Surprises (DSS) gold promotions, which opens next week at a time when local gold prices are still near record highs.

The Dubai gold rate this morning is stuck on Dh378.5 for a gram of 22K, while the 24K is at Dh408.75. Over the last few days, gold has kept to either Dh378.5 or Dh383 amidst the increased tensions surrounding the Israel-Iran strife.  

Raffle draws linked to gold purchases have been a popular part of the shopping calendar in Dubai, whether through the Dubai Summer Surprises or DSS. But this year, there is the added incentive to get shoppers’ interest while gold prices have kept shooting higher.

“The DSS gold raffles will be an opportunity for ‘bargain buying’ for shoppers who want to pick up a minimum amount of gold,” said Shamlal Ahmed, Managing Director at Malabar Gold & Diamonds. “It’s been a tough environment for gold shopping, but the hope is that DSS raffles will help keep shoppers come to the stores.

“Even smaller purchases of gold and jewellery helps in these times.”

Others in the gold business say that raffles have been the prompt for gold buyers to put in a 'minimum' spend and then hope for the best when it comes to the winning part.

According to retail sources, some residents could also end up ‘investing’ in gold if they have decided to ditch travel plans for summer and use that cash for some other purposes.

“We saw this trend in 2021, when Covid situations in other countries led many UAE residents to stay on for the summer,” said a jeweller. “That period saw many residents picking up additional gold, and it came as such a surprise for the trade. Because 2021 gold prices were on the higher side, after the spike during the Covid times.’

In the last 30 days, the lowest the local gold price has dropped to was the Dh365.5 on May 30. “From current levels of Dh378, it will take something decisive to happen on the Israel-Iran front for prices to drop,” said an FX analyst. “Even then, there is no guarantee that the Dubai gold rate will soon dip back to Dh360 range.”