DUBAI — Gold prices in the UAE have fallen for a second consecutive day, offering a glimmer of hope to shoppers hoping for better deals ahead of the Eid Al Adha festivities.
Retail rates dipped by up to Dh5 per gram on Tuesday, as global markets saw a sharp $45 drop in gold prices, driven by a stronger US dollar and easing demand for safe-haven assets.
As of today:
- 24K gold is retailing at Dh397.50 per gram
- 22K gold is at Dh368.25
- 21K gold sits at Dh353.00
- 18K gold is trading at Dh302.50
These figures mark a continued correction from highs seen earlier in May, when 22K gold surged to Dh374.75, prompting many buyers to hold off on purchases.
Global Trends Driving the Drop
Analysts attribute the pullback to a combination of rebounding dollar strength and eased US-EU trade tensions, with Washington extending its tariff deadline on European imports to July 9. These shifts have taken pressure off gold, which typically rises amid uncertainty and geopolitical risk.
“Gold is responding to the same macroeconomic cues we’ve been watching for weeks,” said one Dubai-based commodities trader. “If the dollar continues to strengthen, gold could fall further in the short term.”
Consumer Relief Ahead of Eid
The price dip is being welcomed by residents hoping to capitalise on lower rates before Eid Al Adha, which traditionally drives a surge in gold purchases across the Gulf. Earlier this month, 22K gold had briefly touched Dh359, a rate many shoppers are now hoping will return in the coming days.
However, despite the seasonal expectations, retailers report sluggish sales, saying demand has dropped by up to 25% compared to previous Eid periods. The slump began on May 20, when a sudden spike in prices sent 22K gold from Dh360.25 to Dh367.25 in just one day.
“We’ve seen some of the slowest footfall of the year,” one gold retailer in Deira Gold Souk said. “People are watching the market closely and waiting for the right moment to buy.”
What’s Next?
With the Dhu Al Hijjah crescent expected to be sighted on May 27, and Eid Al Adha likely to begin on June 6, time is running out for buyers and sellers alike. All eyes are now on the international markets to see whether gold will continue its downward slide—or rebound as holiday demand kicks in.
