Dubai, UAE – June 26, 2025 — Gold prices in Dubai climbed sharply on Thursday, rising by AED 3 to AED 372.75 per gram for 22-carat gold, as market watchers cite global economic uncertainty and shifting investor sentiment.
The price spike comes despite expectations of a decline following a tentative ceasefire between Israel and Iran earlier in the week. Traders report that gold rates have remained volatile, fluctuating between AED 368 and AED 373 per gram in recent sessions, with a temporary dip to AED 371.50 on Wednesday.
Analysts suggest the upward trend could persist in the near term, although a dip toward AED 365 remains possible if geopolitical tensions ease further or US economic data stabilises.
DSS Offers Cushion Against Rising Rates
As Dubai gears up for the annual Dubai Summer Surprises (DSS), jewellery retailers are hoping a raft of aggressive seasonal promotions will help offset the impact of rising prices and encourage shoppers to return to the gold souks.
Retailers across the emirate have rolled out incentives including:
- Direct discounts and cashback deals, potentially saving buyers up to AED 10 per gram.
- Gold exchange programmes, allowing customers to swap old jewellery at full market value with no deductions.
- Reduced making charges, with some brands slashing fees by up to 50%.
- DSS raffle entries, where shoppers spending AED 1,000 or more stand a chance to win gold and luxury prizes.
“These promotions are crucial at a time when price sensitivity is high,” said a prominent trader in Deira Gold Souk. “Consumers are looking for value, and promotions tied to DSS help provide that cushion.”
Cautious Optimism Among Shoppers
While the recent surge may give some buyers pause, many are watching closely for a correction before making purchases. Retailers say the AED 368–370 range could still represent an attractive entry point for customers seeking to buy for weddings, investments, or gifting.
“Savvy buyers are waiting to see if the price pulls back to the AED 365 mark,” said a sales manager at a major gold retailer. “But with DSS offers, even at current prices, there’s a window of opportunity for smart shopping.”
Dubai remains one of the world’s most active gold retail markets, with tourists and residents alike drawn by tax-free purchases, quality assurance, and transparent pricing.
