Gold prices are dropping now: Will UAE shoppers see prices fall below Dh400?

Dubai: Gold prices in Dubai are showing signs of cooling — and for UAE shoppers eyeing jewellery or investment bars, that could mean a welcome breather.

After soaring to near eight-week highs last week, global gold prices slipped on Monday by 1.3%, settling at $3,389 an ounce, as hopes grew that the latest flare-up between Israel and Iran might not spiral into a wider regional war.

In the UAE, 24-karat gold dropped to Dh411.75 per gram, while 22-karat was at Dh381.25, 21-karat at Dh365.50, and 18-karat at Dh313.50.
(Check live Dubai gold rates here.)

Until late last week, prices had been climbing rapidly — fuelled by fears that tit-for-tat strikes between Israel and Iran could spill over and impact oil flows, especially through the critical Strait of Hormuz.

But traders are now reassessing the risk. Past conflicts in the region have shown that oil and gold spikes tend to be short-lived if shipping routes remain unaffected. As a result, both oil and gold prices slipped over 1% in early trading this week.

That’s the key question many UAE residents are now asking — particularly ahead of summer wedding season, or if they’ve been delaying larger purchases hoping for a price drop.

Gold has hovered in the Dh365–Dh375 range for much of April and May. But when the first Israeli airstrikes on Iran were reported, prices jumped past Dh382 — and briefly stayed above Dh415 in the following days.

“This kind of surge wasn’t technical – it was fear-driven,” one Dubai-based jeweller told Gulf News. “Retailers began adjusting prices faster, expecting the Dh400 mark would not just be broken, but become the new norm.”

Despite the current dip, don’t expect a major crash in prices just yet. There are still several upward pressures:

Gold remains about $60 below its all-time high of $3,500 per ounce. Some analysts warn that if tensions escalate again, prices could touch $3,800, pushing UAE rates well above Dh400 once more.

If you're buying for an event or personal use, the current dip could offer value — especially with no major shifts expected before the US Fed meets later this week. But if you’re purely investing, it might be worth watching prices for a few more days to see if they slip further.

Either way, gold in Dubai is still a strong long-term store of value — and in today’s uncertain climate, many UAE residents continue to see it as a wise buy.