Dubai gold prices surge near Dh7 in volatile pre-festival week
High prices push UAE residents to sell gold before Akshaya Trithiya
DUBAI: After three straight days of price drops, gold prices in Dubai have reversed course with a sharp rise of nearly Dh7 per gram on Thursday morning, sending a jolt through shoppers expecting continued relief.
The 22K rate jumped to Dh374.75 per gram while 24K breached the Dh400 mark again, reaching Dh404.65, according to the Dubai Jewellery Group.
By 9.30AM, prices pulled back slightly, with 22K quoted at Dh371. The rebound follows a temporary dip below Dh370 earlier in the week. The movement reflects a fluid market ahead of Akshaya Trithiya on April 30 – one of the busiest gold buying occasions for South Asian residents in the UAE.
Retailers had been anticipating a drop towards Dh360, in line with softening global sentiment and easing rhetoric on US tariffs. However, fluctuations in international markets have disrupted those expectations.
Buying and selling behaviour
Retailers in the Gold Souk reported mixed shopper sentiments. With prices hovering near record highs, many residents are opting to sell rather than buy. “Gold has touched the highest rate in history, and many residents who had been quietly investing over the last few years are now cashing in,” a long-time Dubai trader told Reuters.
Recent days have seen a surge in customers offloading gold to fund pilgrimages, weddings, or clear debts. “People started seeing gold not just as jewellery, but as an asset,” said one trader. Many buyers had accumulated small quantities over festive seasons, now reaping profits of tens of thousands of dirhams.
Others, like long-time resident Absar Ahmed, are using gains to fund Hajj pilgrimages. “Every six months, I would buy one tola gold bar,” he shared. At today’s rate, the value of his collection has doubled, allowing him to finance the trip.
Meanwhile, shoppers contemplating festive purchases are facing tough decisions. The booking system – which locks in current rates for 30 days – is gaining attention, but whether now is the right time to buy remains debatable.
Global impact
Internationally, gold surged back above $3,330 an ounce after dipping below $3,300 midweek. It had briefly reached an all-time high of $3,500.05. Reuters reported that the rebound was driven by renewed demand for safe-haven assets amid trade uncertainty and a weakening dollar.
The US-China tariff saga remains a dominant factor. Optimism over a deal and Trump’s recent announcement that tariffs could be “substantially” reduced injected volatility into the markets.
Reuters also noted that high US tariffs and shifting Federal Reserve policies are playing a dual role: driving up gold as an investment, while suppressing jewellery demand.
“In markets like Dubai, this creates a two-fold effect: on one hand, you see stronger interest in gold as a safe-haven asset, on the other, high prices dampen jewellery demand,” Andrew Naylor of the World Gold Council told Reuters.
This sentiment is visible across UAE markets, with shoppers shifting to lighter designs and even considering diamonds as alternatives. As one sales rep at Dubai’s Gold Souk said to Reuters, “There are no potential customers nowadays because of the gold prices.”
With the global average gold price forecasted to hit $3,675 per ounce by year-end — and potentially rising to $4,000 in 2026 – price-sensitive regions such as the UAE could see continued volatility in buyer patterns.