Dubai gold prices dip below Dh370 as cash-for-gold trend grows
Eid Al Adha deals run June 2-9 across UAE retailers
DUBAI: The price of gold in Dubai has dipped below Dh370 per gram, giving potential shoppers a reason to revisit jewellery stores ahead of Eid Al Adha.
After nearing Dh380 levels earlier this week, the drop provides some relief for price-sensitive buyers.
The move also coincides with a major promotional drive by Dubai gold retailers, set to run from June 2 to 9, featuring zero deduction on exchanges and partial returns on selected purchases.
Dubai gold prices
As of Friday, 24-carat gold in Dubai was priced at Dh396 per gram, while 22-carat gold stood at Dh366.75. The popular 21-carat option registered at Dh351.5, and 18-carat gold held at Dh301.25.
These figures suggest that while global prices show a steady climb, Dubai’s market has reacted with slightly tempered rates – potentially setting the stage for an Eid sales surge.
Promotions and sales boost
Retailers are counting on the Eid Al Adha break to inject momentum into gold sales, aiming for a 20%-25% spike over current figures. The Dubai Gold & Jewellery Group’s promotion includes attractive incentives to encourage shoppers to part with old gold. These include no deductions during gold exchanges and ‘half-back’ schemes that return part of the value in vouchers or future purchase discounts.
Customers not looking to exchange can also opt to sell their gold for instant cash. In such cases, gold valuation is done on-the-spot, taking into account the purity and real-time price. Retailers suggest that selling is ideal when market rates hover within Dh10 per gram of recent peaks – offering sellers maximum return on investment.
Global influence
Globally, gold is enjoying its best weekly performance in over a month. Spot gold rose to $3,303.12, up 3 percent for the week. US gold futures followed suit, climbing to $3,297.14. The decline of the US dollar, which has lost over 1 percent this week, has further buoyed international gold prices. The weakened dollar makes gold more appealing for investors dealing in other currencies, adding to bullion’s safe-haven demand.
The dip in the dollar follows rising concerns over the United States’ fiscal health. A sweeping tax and spending bill, expected to increase national debt by up to $5 trillion, has created uncertainty around US economic policy. Meanwhile, low demand for US Treasury bonds and a recent credit rating downgrade have led investors to pivot towards stable assets like gold.
Market trends
Amid this backdrop, Dubai shoppers are now weighing their choices. With retailers offering flexible exchange, cash-back, and resale options, the decision to buy, sell or hold comes down to personal financial strategy. For those preferring to wait, the current price drop may not be dramatic, but it does offer a better window than the recent highs.
Industry experts also remind buyers to keep original invoices to facilitate smoother resale or exchange processes. With the Eid season about to kick in, gold’s value – both symbolic and financial – remains a compelling reason for many to head to the shops.