The Dubai gold rate has slipped to its lowest level in 30 days, dropping to Dh352 per gram of 22K gold, as global bullion prices continue to retreat from recent highs. Over the past 24 hours alone, the local gold rate has declined by Dh8.25, reflecting the ongoing correction in international markets.
However, despite the price drop, UAE shoppers remain cautious. Many are holding out for even lower levels, recalling the sub-Dh340 per gram prices seen in March. According to jewellery retailers, this lingering sentiment is keeping demand subdued.
Shoppers Still Waiting for Deeper Price Cuts
“Shoppers have been sitting on the sidelines this week,” said a jewellery retailer. “Even promotional offers like reduced or waived making charges are not enough to lure them back. The general expectation is that the Dubai gold rate could fall further.”
Over the past year, gold prices have repeatedly shown brief corrections, only to rebound within a day or two, leaving many buyers disappointed. This history of sharp recoveries is contributing to the current hesitancy.
“A realistic price for gold would be in the region of $3,000-$3,100 per ounce,” said a gold wholesaler. “With the current global price hovering around $3,150, shoppers believe it’s worth waiting for further declines.”
Sentiment-Driven Purchases Prevail
Jewellery retailers emphasize that gold purchases are often dictated by personal occasions rather than just price movements. Anil Dhanak, from Kanz Jewels, noted, “Weddings, anniversaries, and similar events decide whether shoppers want to buy now or later. If there’s no urgent need, they are happy to wait.”
This pragmatic approach means that a large-scale rush to buy gold is unlikely to occur merely due to a temporary price dip.
Upcoming Offers Could Boost Demand
Retailers are gearing up for potential promotions if gold prices remain soft. With the pre-summer holiday season approaching, special offers and discounts could help stimulate demand.
“If the per gram price can be reduced by another Dh3 to Dh5 through promotions and savings, that might be enough to encourage shoppers,” said a Dubai-based retailer.
Conclusion
While gold prices in Dubai have hit a 30-day low, consumer caution persists. Shoppers are watching closely for deeper corrections or compelling promotional offers before making their purchases. Until then, the wait-and-see approach is likely to dominate the local market.
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