Dubai Gold Price Begin to Fall: Will it Fall Below Dh360?
Dubai: Dubai’s gold market is currently in a state of anticipation, as shoppers eagerly await a significant drop in prices before the summer holidays.
The 22K gold rate started the week at Dh367 a gram, a slight decrease from Dh371.25 on Friday, May 9. However, this dip may not be substantial enough to entice buyers who have been hoping for prices to soften to the Dh350-Dh360 range.
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A Market of Highs and Hopes
The past few weeks have been volatile for gold buyers. Global gold prices have surged, increasing by $130 an ounce in the last 30 days and a staggering $758 an ounce in the last 180 days.
This upward trend culminated in a new daily high last week, with 22K gold reaching Dh381.75.
While the current price of Dh367 represents a correction from those highs, some retailers believe a more significant drop is needed to reignite shopper interest.
“I think it will require a bigger price drop to get shoppers really interested,” said one gold retailer. “If the price drops under Dh360, that would be a good level ahead for buying before the holiday breaks.”
Factors Influencing the Price
The current mood of optimism in the market is largely attributed to positive developments in US-China tariff talks in Switzerland. These talks have contributed to a decrease in bullion prices, which have fallen by nearly 70to70 to 70to3,271 an ounce.
Expert Advice: Buy on the Dip
Despite the recent price volatility, experts advise UAE shoppers to continue their strategy of “buying at every dip.” Chandu Siroya, Managing Director at Siroya Jewellers, notes that while short-term corrections are common, gold prices tend to head higher in the long run.
The coming days will be crucial in determining whether gold prices will fall enough to trigger a surge in buying activity.
If prices drop below Dh360, it could present a golden opportunity for shoppers to acquire jewelry before their summer vacations.
However, if prices remain elevated, buyers may need to adjust their expectations and consider purchasing gold at the current levels.
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