Gold prices in UAE at one-month low: Will the drop continue after weekend?

Gold dipped to monthly low ahead of weekend as global sentiment eases, US dollar weakens

Last updated:
Justin Varghese, Your Money Editor
2 MIN READ
For most of June, gold had been trading well above Dh370 per gram for 22K, peaking at Dh383.75 mid-month.
For most of June, gold had been trading well above Dh370 per gram for 22K, peaking at Dh383.75 mid-month.
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Dubai: If you were eyeing that long-postponed gold purchase, this weekend might have been your chance.

For the first time in nearly a month, gold shoppers in the UAE were seeing prices dip to more affordable levels—Dh365.5 per gram for 22K gold and Dh394.5 for 24K. (Check latest Dubai gold prices here.)

That’s the lowest Dubai gold price since May 30. But the big question is—will prices drop further after the weekend?

Prices ease after weeks of highs

For most of June, gold had been trading well above Dh370 per gram for 22K, peaking at Dh383.75 mid-month. This week’s decline marks the most sustained correction seen in several weeks.

While the price ultimately held steady at Dh365.5 by the weekend close, the mood among UAE gold retailers are expected to remain cautiously optimistic even as they saw more buyers walk in when prices dropped below Dh370.

What’s driving the price down?

Globally, several factors have taken the shine off gold this week. Key among them is a drop in the US dollar, which has slipped to a three-year low. Typically, a weak dollar makes gold more attractive as a hedge, but this time, improving global sentiment is tempering that demand.

Ongoing progress in trade negotiations between the US, China and the EU, along with easing geopolitical tensions—especially between Israel and Iran—have reduced the appeal of safe-haven assets like gold.

In the US, stronger-than-expected consumer sentiment and easing inflation fears have also shifted investor interest towards equities and other risk assets. On Friday, spot gold fell by as much as 2.2% to $3,255.94 an ounce, its lowest level since May 29. That drop contributed to the softening of Dubai gold rates.

What can you expect this week?

Based on current trends, gold prices are likely to remain under pressure heading into next week. Unless fresh geopolitical risks emerge or the US dollar reverses its slide, global gold could continue to drift lower—pulling UAE prices down with it.

That said, prices remain well above January levels, and some analysts still forecast a medium-term rebound. According to earlier market reports, gold could yet test the $3,500–$3,700 range in the coming weeks if global risks flare up again.

So, for UAE shoppers wondering whether to buy now or wait: prices are lower than they’ve been in weeks, but further softness can’t be ruled out. Keep an eye on global trade news and US Fed signals before locking in a purchase early next week.

Bottom line? Gold is cheaper than it’s been in a month. If you're planning to shop and worried you missed out on the weekend offers, don’t rush—the coming week could bring a further dip with deals even better than in recent weeks.

Justin Varghese
Justin VargheseYour Money Editor
Justin is a personal finance author and seasoned business journalist with over a decade of experience. He makes it his mission to break down complex financial topics and make them clear, relatable, and relevant—helping everyday readers navigate today’s economy with confidence. Before returning to his Middle Eastern roots, where he was born and raised, Justin worked as a Business Correspondent at Reuters, reporting on equities and economic trends across both the Middle East and Asia-Pacific regions.

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