Will Dh400 price level now become a new norm for Dubai gold buyers?

Fears of a prolonged Iran-Israel conflict are set to keep UAE gold prices on the boil

Last updated:
Justin Varghese, Your Money Editor
3 MIN READ
An employee arranges gold jewellery kept for display.
An employee arranges gold jewellery kept for display.
AFP-NARINDER NANU

Dubai: If you’re a regular gold shopper in Dubai, this question may already be on your mind: Is Dh400 per gram for 22K gold just around the corner?

Over the weekend, Dubai’s gold rate for 22K hit an all-time high of Dh383.5 per gram, breaking past the previous peak of Dh381.75. For 24K, it touched Dh414 per gram. And while prices usually stay flat across the UAE from Friday evening through Sunday, everyone—from retailers to investors—is now bracing for Monday’s next move.

The reason? Escalating geopolitical tension between Israel and Iran. Gold prices globally surged after Israel launched a series of airstrikes on Iran’s military and nuclear facilities. Iran retaliated with drone attacks, raising fears that the conflict could drag on—and spread wider across the region. Whenever there’s conflict, gold shines. That’s because it’s considered a safe-haven asset, and global investors start buying more of it during uncertain times.

For UAE buyers, that means gold jewellery is becoming more expensive by the day. (Check the latest Dubai gold rates here.)

Will Dh400 become the new normal?

Until recently, the Dh400-per-gram level for 22K seemed like a distant milestone—possibly achievable only by late 2025. But the latest price action is forcing bullion traders to revise their expectations. If geopolitical tensions persist, the Dh400 mark could be crossed well before summer ends.

According to industry sources, the local gold price hovered in the Dh365–Dh375 range for much of April and May, with market attention focused on US tariff threats. But as soon as news broke of the Israeli attacks, gold leapt past Dh382 and has held steady at historic highs since.

“This kind of price jump signals that the gold market is reacting not to technical factors but to real fear,” one Dubai-based jeweller said. “Retailers are adjusting prices faster now, expecting that Dh400 will not just be breached—but sustained.”

Should you buy now or wait it out?

That’s the golden question.

Some UAE shoppers are choosing to delay purchases, hoping for a drop. But others—especially those buying for weddings or as long-term investment—are still going ahead, betting that today’s prices may look like a bargain if things escalate further.

Here’s how you can think about it:

  • If you need gold urgently (for gifting, marriage, or savings), buying now might still make sense, especially if prices keep trending upward.

  • If your purchase is flexible, it may help to watch key news updates this week, especially around the Middle East conflict and global oil market reactions.

Why the gold surge may not cool soon

Several factors are pushing gold higher:

  • Safe-haven demand due to the Israel-Iran standoff

  • Lower interest rate expectations in the US after soft inflation and jobs data

  • Strong central bank buying and investor demand

  • Supply fears, especially if Iran’s exports and shipping routes are disrupted

Gold is currently trading around $60 below its all-time high of $3,500 per ounce, a record reached earlier this year. Some analysts even expect prices to touch $3,800 per ounce if the conflict escalates, which could push local UAE gold prices well past Dh400.

What UAE buyers should watch this week

  1. Updates from the Middle East – Any new developments will directly impact global sentiment, with any de-escalation pressuring prices.

  2. Gold’s global price movement – Watch for $3,500 as the next trigger level.

  3. Dubai gold rates on Monday – These will reflect the weekend’s international market changes.

For now, volatility is here to stay—and UAE gold buyers are advised to keep a close eye on both headlines and price charts. Whether you buy now or later, gold’s role as a crisis hedge is once again shining bright.

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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