Dubai gold prices near record high at Dh382.75 ahead of Onam

Dubai: Gold shoppers in the UAE have been hit with another price shock, as the Dubai gold rate jumped by nearly Dh3 to reach Dh382.75 per gram for the popular 22-karat version. This new increase means the local gold price is just Dh1 away from its all-time record high, which was touched in June earlier this year.

The latest hike is creating concerns among jewellers and buyers, especially with the South Indian festival of Onam just days away in early September. Onam is one of the biggest shopping and gifting seasons for gold jewellery, and many Indian families in the UAE wait for this time to make their purchases.

A retailer explained that the industry had been expecting lower prices in September, not higher ones. “We thought gold prices in Dubai would be around Dh370, maybe even drop to Dh365 or Dh366. Nobody expected to see it jump back above Dh380 so soon,” the retailer said.

Sudden Jump in Prices

This week alone, the UAE gold rate for 22K has climbed by more than Dh6 per gram. For regular buyers, this means they have to spend hundreds of dirhams more for the same ornaments compared to just a few days ago.

To adjust to rising rates, some shoppers have already switched to lighter ‘extra-lite’ 22K jewellery. These pieces weigh less but still serve as a safe investment, helping families continue their gold-buying traditions without breaking their budgets.

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Promotions vs. High Prices

Jewellers in Dubai are about to launch their first promotions of the new shopping season, offering discounts and raffles to attract buyers. But industry experts say customer reaction will depend on whether prices stay high or begin to cool down.

One retailer said, “We are hoping global gold prices settle by late October. The last weeks of October are very important because of Diwali and Dhanteras, when demand is always huge. If rates don’t come down, it will be very tough for us to recover from a slow year of sales.”

Global Gold Price Surge

The local price hike is closely linked to what is happening in the global metals market. Internationally, gold closed the week with a strong $30 jump, reaching $3,447 an ounce. The main reason is that more investors are buying gold as a safe asset ahead of the expected US interest rate cut in mid-September.

Whenever the US cuts interest rates, it usually gives gold a boost, as lower returns from the dollar make gold a more attractive investment.

Market Uncertainty Adding Fuel

Adding to the global uncertainty, a US court recently ruled that President Trump’s reciprocal tariffs were illegal. This has shaken confidence in financial markets and created fresh doubts about trade policies. In such times of instability, gold is often seen as a safe haven.

Experts warn that until the markets calm down, gold prices are likely to stay unpredictable. Investors may keep moving their money into gold, which could keep prices high for the next few months.

Impact on UAE Residents

For residents in the UAE, gold has always been more than just jewellery. It is both a tradition and a form of investment. Families save for months to buy gold during festivals like Onam, Diwali, and Dhanteras, as it is considered lucky and a symbol of prosperity.

But with prices climbing this fast, many households are now facing tough choices. Some may reduce their purchases, buy lighter pieces, or postpone big buys until the market stabilizes. For jewellers, this situation could bring a slowdown in festival sales, even during the busiest season of the year.

What to Expect Next

Experts say the coming weeks will be crucial. If gold continues to hover near record highs, sales will remain weak. However, if global markets stabilize by late October, Dubai’s gold and jewellery industry may still see a recovery during Diwali shopping.

For now, all eyes are on the mid-September US interest rate decision and global market movements. Until then, UAE gold buyers may have to live with higher prices and hope for relief before the festival rush.