Will Dubai gold price drop after Trump gets his 'Big Beautiful Bill'?

Dubai: US President Trump has got his ‘big beautiful bill’ passed – as far as UAE shoppers are concerned, their interest is whether this would help bring the Dubai gold price down from its still high levels.

The early indicators are good – gold retailers say there is a ‘good chance’ prices will drop below Dh370 by the end of the day. Currently, it’s at Dh371.75 a gram for 22K and down from the Dh374 on July 1.

At 9:30am, the price was Dh372.75 - and not the price break shoppers were hoping for.

But what shoppers are looking for - ideally – is for the local price to be around the Dh365 mark, which is what it was over the last weekend.

“There are ready shoppers waiting for the right gold price drop – anything between Dh360-Dh365 will set off ‘relief buying’,” said a gold retailer. “We believe quite a lot of UAE resident-shoppers will actually start their summer vacations after July 15.

“They are the ones waiting to see if gold price will drop.”

For that to happen, a lot depends on how the global markets view the US’ latest budget, which cleared the Senate and Congress approvals. Now, Trump gets to sign what he has always termed the ‘big beautiful bill’ that will set off faster growth for the US economy.

Now, what will it mean for gold prices? If the new bill helps the dollar regain some strength, which could mean less investor appetite for gold. Which could then mean a price drop from the current levels of $3,336 an ounce. (This morning, bullion is lower by just over $10 an ounce.)

A week ago, the Dubai gold rate was Dh365.5, and that meant a marked increase in the number of shoppers visiting - and buying - jewellery in the UAE.

"It's not easy for shoppers, but there is more acceptance of Dh360-Dh365 levels," said a gold retailer. "Whereas earlier, anything over Dh350 would put off shoppers. It's been the case each time gold prices rise - at some point, shoppers decide to accept the reality."