Dubai gold surges Dh3 overnight, 22K now at one-week high
Jewellery sales hinge on Summer Surprises Dh1,000 raffle entry
DUBAI’s 22K gold price has surged back to Dh370 a gram, its highest level since June 23, gaining Dh3 overnight.
The price jump arrives just as footfall was returning to Gold Souk and other jewellery outlets, spurred by Dubai Summer Surprises 2025 promotions. However, this sudden rise may dampen shopper enthusiasm if rates remain at this level.
Jewellers are relying on the Summer Surprises raffle to cushion the blow. The ongoing campaign now allows entry with a Dh1,000 spend, down from the previous Dh1,500.
Lock-ins pay off
Many buyers had locked in prices at Dh365.75 earlier, and their strategy seems to be paying off. Retailers report a notable spike in forward bookings as consumers tried to secure rates before further increases. Price-sensitive shoppers have typically reacted negatively when gold crosses the Dh370 threshold, and retailers anticipate a similar pattern unless prices dip again.
Meanwhile, Dubai’s 24K gold is now priced at Dh401.06, with 21K at Dh354.43 and 18K at Dh303.80. The price uptick mirrors trends in global markets, where bullion rose by 0.58 percent as the US dollar weakened amid speculation around changes to Federal Reserve leadership.
Global factors influence
Spot gold is currently trading above $3,334 an ounce, up more than $40 since early Monday. Futures are also on the rise, with the metal benefiting from lower US Treasury yields and increasing expectations of Federal Reserve policy easing.
The price movement came despite no major geopolitical shifts. Rather, it followed a raft of US legislative progress and stabilising trade relations with China and Canada. Analysts expect gold to hover between $3,100 and $3,500 through Q3, driven by currency movements, fiscal policy, and investor sentiment.