The gold price in Dubai has just hit a new record—388 dirhams per gram for 22-carat gold, while in June it was 383.75 dirhams per gram. For 24-carat gold, it is 419 dirhams per gram, as UAE gold buyers and jewelry retailers try to make sense of this latest surge in prices. The start of the new season raises even more concerns for the UAE’s gold and jewelry trade. This week is particularly important for the trade, as the South Indian festival, Onam, is celebrated and usually sees fresh demand for gold. Well, this is not the first time that the price of gold has surged; it has been happening for a long time.
This is what will make buyers think—on January 1, 2025, the local 22-carat gold price was 294.5 dirhams per gram. And in just 9 months, there has been a massive increase of more than 90 dirhams on a per-gram basis, and most of the increase has happened after April. “Record gold prices are challenging for both the trade and consumers,” said the vice president of Malabar Gold and Diamonds. “This is that time of the year when all retailers stock up in anticipation of Diwali and other festival-related shopping. This year, we are moving towards lighter-weight jewelry, keeping in mind the budget of the customers.”
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Are gold prices in Dubai going to set a new record?
For now, buyers and gold retailers are not sure whether there will be good sales at the start of the new season. “If Onam sales are disappointing this week, the next big date will be the Diwali and Dhanteras shopping season in October. Hopefully, gold will stabilize by then,” said a retailer.
Gold Price Increases in Minutes
This morning, the price of gold in Dubai was 382.75 dirhams—and it didn’t take long to set a new record. In the last 60 minutes, gold has risen by more than $25 to $3,477 an ounce in global markets. The new gold price is a matter of concern for all the people looking to buy gold in the UAE and Dubai.
Concerns about the US economy are taking centre stage again, and that’s why investors and central banks are buying gold heavily. “I expect the current bullish trend to continue around $3,487 an ounce in the coming days,” said Anil Dhanak, managing director of Kanz Jewels.
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Ahead of Onam, the price of gold in Dubai hit a 30-day high of 379.25 dirhams. For gold buyers, this again puts them in a ‘can’t do much’ situation. “The only hope is that gold prices will come down soon. No one can say ‘how soon,'” said a Dubai-based jeweller.
Your reaction to US tariff uncertainty?
This recent surge in gold prices could be an immediate reaction to what happened on the tariff front last Friday. A US court has declared President Trump’s reciprocal tariffs illegal – and given the administration until October 14 to take the issue to the US Supreme Court.
Another reason for the rise in gold is the upcoming meeting of the US Federal Reserve, in which a decision will be made on cutting interest rates. If this happens, gold is likely to see another surge. The current price is $3,543 per ounce, which means that spot gold prices are likely to rise in the coming days.