UAE gold demand stays strong as shoppers make most of price dip before travelling

Dubai: Gold prices in the UAE slipped again last week – and shoppers across the country were quick to take advantage.

The popular 22K variety opened Monday at Dh366 per gram, holding largely steady after shedding Dh10 in a week. A week ago, it was Dh377.5. (Check latest Dubai gold prices here.)

The highest purity 24K gold was priced at Dh396 per gram, according to Dubai Jewellery Group data. Other varieties saw 21K at Dh351.50 and 18K at Dh301.25 per gram.

One trend picking up speed among UAE residents is booking gold in advance. Many shoppers over the weekend opted to lock in current rates with a 30-day purchase window, hoping to secure an even better deal if prices dip further in the coming weeks.

Retailers say the response has been overwhelming. “Resident shoppers clearly haven’t lost their appetite for gold,” one Dubai retailer noted. “Even though it’s summer, footfall is strong – and the raffle promotions during DSS 2025 are giving them an extra reason to spend.”

The Dubai Summer Surprises gold raffle now requires a minimum spend of Dh1,000 to enter, adding more incentive to make that purchase now.

Globally, gold prices nudged up 0.3% on Monday, following two weeks of declines. The brief recovery came as the US dollar eased slightly, and markets awaited progress on American tax talks and trade negotiations set to conclude by July 9.

Still, this could be gold’s first monthly drop of the year, with geopolitical tensions in the Middle East cooling and better-than-expected US economic data reducing demand for safe-haven assets.

But overall, gold is still up about 25% this year, and remains a go-to asset for investors looking to hedge against inflation or uncertainty.

According to experienced gold traders, if international gold prices dip below $3,200, a drop toward $3,000 could follow. But many also see a possible bounce back, especially if the US dollar weakens further or fresh global risks emerge.

Some traders believe the recent price slide may have been an overreaction to easing conflict fears, considering gold already had strong fundamentals pushing it higher this year.

For UAE residents, that means it’s still a good time to buy the dip – but there’s no guarantee how long these prices will last.