Dubai — Shoppers and investors in the United Arab Emirates are beginning to breathe a sigh of relief as gold prices in Dubai witnessed a significant decline of Dh14 per gram over the past seven days, rekindling hopes of a more favourable buying window in the coming weeks.
Market analysts and traders at the iconic Dubai Gold Souq have started expressing cautious optimism that the recent volatility in the global bullion market could begin to ease, with prices potentially returning to more stable levels by early September. This comes as economic indicators suggest a slight cooling in inflationary pressures globally, alongside a temporary halt in aggressive interest rate hikes by the U.S. Federal Reserve, both of which heavily influence gold movements worldwide.
As of Tuesday, July 29, the price of 24-karat gold in Dubai was hovering around Dh259 per gram, a notable drop from the Dh273 per gram recorded just a week earlier. The dip has sparked increased foot traffic at gold retail outlets across the emirate, particularly from residents and tourists looking to take advantage of the lower rates for personal purchase or investment.
Local jewellers report that demand is gradually picking up again, especially among budget-conscious buyers who had postponed purchases during the recent price spike earlier this month. Many vendors in the Souq are now forecasting that if the current trend persists, with no major geopolitical or economic shocks, gold prices could stabilise at more familiar levels within the next four to five weeks.
According to feedback from traders, the current dip is viewed as a much-needed market correction rather than a long-term crash, with gold still maintaining its reputation as a safe-haven asset in uncertain times. Investors are, however, being advised to watch global signals carefully, especially related to U.S. employment data, inflation reports, and geopolitical tensions, which could still impact the precious metal’s trajectory.
For now, the Dh14 price drop is being welcomed by UAE residents who traditionally turn to gold not just for adornment, but also as a store of value and a hedge against currency devaluation.
