Gold price is dropping - can UAE shoppers expect a return to Dh350?

Next 24 hours crucial in deciding whether gold rates soften further

Last updated: May 29, 2025 | 07:19

Manoj Nair, Business Editor

2 MIN READ

After the decision by the US trade court judge on Trump tariffs, there is one less reason for gold prices to push higher. Can gold drop to under $3,000 an ounce?

Gulf News Archive

Dubai: Will this be just the price drop gold buyers in the UAE were waiting before next week’s Eid Al Adha? Or will they end up being disappointed all over again?

Since last evening, gold prices have shown signs of weakening dropping all the way to $3,248 an ounce at one point before moving up to the $3,270 level right now.

The Dubai gold rate is at Dh365.25 a gram for 22K and down on the Dh368.5 from yesterday. And that has perked up shoppers – to an extent.

Also Read: Dubai gold rate too high - this Eid Al Adha, will shoppers switch to diamonds?

There were calls made to jewellery retailers to get a ‘price lock in’ by those who have made a habit of buying gold during Eid promotions. This way they also get the lower price if on the buying day next week, gold drops even further than the Dh365 now.

Check gold trends over next 24 hours

But shoppers might do well to see how price trends are in the next 24 hours – there are more indications of gold rates softening after a shift in global market sentiments related to US tariffs. A judge in the US has ruled that President Trump ‘overstepped’ his authority in announcing sweeping tariffs on all importers into America. And April’s ‘Liberation Day’ tariff announcement was one of the main drivers for the rise of gold to record levels to $3,500 and then spending most of may in $3,300 plus range.

Will gold fall to under $3,000?

Back in early April, gold was around the $2,967 level, which meant the Dubai gold rate was well under Dh350 for a gram of 22K.

Any price drop to those levels would be the best outcome as far as shoppers are concerned. And for the upcoming Dubai Summer Surprises gold promotions that follow the big week of Eid Al Adha offers from the local jewellery trade.

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.