Are you planning to purchase gold this weekend? In that case, UAE residents like you may want to reconsider your decision, given the sharp surge in Dubai gold prices. As of now, the gold price has reached Dh374.5 per gram for 22k gold. The price has increased since 23 June, when it was Dh377 per gram for the same quality of gold.
According to the retail expert in the Dubai Gold Souk, the sudden increase in the gold price has highlighted the weekend sales. He said, “We were expecting a relatively quiet weekend, but this Dh5 increase is a little overpriced. A little increase of Dh1 to Dh2 is manageable for the gold shoppers. But Dh5? It has completely changed their mood.
What is Fueling the Rise in Dubai Gold Prices?
Previously, the gold price in June 2025 was triggered by the weaker US dollar and concern over economic data. However, this jump has happened due to geopolitical uncertainty, especially around the US trade policy.
Recently, US President Donald Trump hinted at new tariffs, including 50% on Brazilian imports and 35% on Canadian goods. Moreover, there is speculation that the European Union could be next, which is causing global trade anxiety.
Therefore, global investors have returned to gold as a ‘safe-haven’ asset. It is one of the significant reasons behind the increase in the gold price in Dubai.
Global Bullion Market Trends
This week, the gold price closed at $3355 per ounce. Notably, the gold futures are now pricing the metal at $3370 per ounce. It means that a further jump in the price is expected in the near future.
Investors are now in the risk-off mood because the 1st of August is the deadline for the US trade deal. Until then, there is a clarity that we will see the consistent demand for gold. Moreover, there could be a higher price in the retail market, like Dubai.
How It Affects UAE Shoppers
Gold has always been a valuable asset in Dubai for investment and gifting during weddings, festivals, etc. However, shoppers are now advised to wait for the market to stabilize with the ongoing trend in the gold market.
If you are not in urgent need of buying gold, you should wait for a few weeks. Notably, macroeconomic and geopolitical development might be the reason behind this increase. However, the correction in the upward trend is expected to happen in a few weeks.
Outlook for the Coming Weeks
The gold price in Dubai is expected to remain volatile as the world is eyeing the US trade policies. Moreover, the 1st of August deadline for the US trade deal is going to be critical for the future of this trend. However, we can expect a continued swing in the price of gold until the deadline.
If you are planning to purchase the gold for an upcoming event or investment, you should closely monitor the daily prices or consult the local retailers about the potential dip or discount. Moreover, it would also be great to track the international rates of the bullion because the gold price in Dubai is directly linked to them.
What Should You do now?
The Dubai gold price touching Dh374.25 per gram for 22k gold is a sign for customers to stop and see. It also suggests that traders get ready for short-term instability. In addition, the upward trend tells analysts to closely monitor how international politics influence the gold price.
Timing is important for both seasonal investors or the first-time buyers. Currently, it is not a right time to either purchase gold or invest in it. Therefore, it would be best to wait for a few weeks.
Read more:
