Gold prices in Dubai fall Dh4: Why shoppers can eye bigger drop soon

Dubai: The price of 22-karat gold in Dubai dropped by Dh4 per gram on Wednesday, giving UAE shoppers and gold investors a fresh reason to reconsider their buying plans.

After touching Dh374 earlier in the day, 22K gold slipped to Dh370/g, while 24K was priced at Dh400, 21K at Dh355, and 18K at Dh304. The drop mirrors global market moves, where gold prices fell 1% to $3,325 an ounce, reversing earlier gains from earlier this week. (Check live Dubai gold rates here.)

In regional markets, 22K gold was priced at SAR382 in Saudi Arabia, OMR39.65 in Oman, QAR377 in Qatar, BHD38.7 in Bahrain, and KWD30.28 in Kuwait.

The slide followed hotter-than-expected US employment data, which pushed the dollar higher and slashed already slim odds of an interest rate cut by the US Federal Reserve at its July meeting. A stronger dollar makes gold more expensive for buyers using other currencies, which typically leads to lower bullion demand.

“The door for July is over and the Fed will take the summer off,” said Gregory Faranello, Head of US Rates Trading at AmeriVet Securities. “The big question was the unemployment rate – and it came in stronger than forecast.”

Gold, which doesn’t earn interest, tends to lose its appeal in a high-rate environment.

Despite today’s dip, gold prices remain up more than 25% year-to-date, buoyed by steady demand from central banks, investors hedging against geopolitical risks, and inflows into gold ETFs.

Analysts say gold is still trading about $170 below its all-time high from April, and upcoming developments — such as changes in US debt policy or further geopolitical tensions — could reignite a rally.

Meanwhile, gold’s haven appeal could get a fresh boost if the US moves forward with a controversial $3.4 trillion tax and spending plan that is expected to significantly widen the country’s deficit over the next decade.

For UAE shoppers, especially those looking to buy ahead of seasonal gifting or wedding events, today’s dip could be a good entry point — but only if they’re watching short-term moves.

If you're betting on prices falling further, the next cue will come from upcoming US inflation data and Fed commentary. Until then, market sentiment may remain cautious, but not panicked.

In other words, Dubai gold shoppers can hope for a bigger price drop in the coming days if US rate cut expectations continue to fade and global market pressures further persist.

Bottom line? If you're buying for personal use, this price level may be attractive, and get even more affordable in the days to come. If you're investing, keep an eye on US economic cues — especially anything that could change the Fed's "wait-and-see" stance.