Dubai Gold Prices Surge Ahead of Eid

Gold Prices Rise in Dubai Before Eid Al Adha

As the Eid Al Adha festival approaches, Dubai’s gold market is once again showing increased activity. By Thursday morning, the price of gold had slightly increased, with the price of 24-carat gold rising to 406 dirhams per gram from the previous day’s 404.5 dirhams. This rise not only reflects international market trends but also the expected rush of buyers typical of the festive period.

Gold Remains a Safe Haven

According to data from the Dubai Jewellery Group, there is a rise in other carat levels too: 22-carat gold opened at 376 dirhams, 21-carat at 360.5 dirhams, and 18-carat at 309 dirhams. Market players and analysts believe that the demand for gold will remain stable mid-term as investors continue to view it as a safe asset in times of global economic uncertainties.

The continuous purchases of gold by central banks, geopolitical tensions, and trade war concerns also contribute to keeping the price of gold steadily above 400 dirhams per gram.

Festive Shopping Frenzy

Gold traders in Dubai have confirmed that the increased demand typical of the Eid Al Adha period is already being felt. Traditionally, there is a stronger interest in gold jewelry during festive periods, be it for gift-giving or personal investment.

International Outlook and Analyst Opinions

In global markets, the spot price of gold is currently around $3,367.62 per ounce, with a slight decrease of 0.22%. However, analysts suggest that technically, gold has broken through the declining trend line that has persisted since the April peak, which could indicate the formation of new support levels in the $3,325 range. Further technical supports have been identified at $3,280 and $3,223.

Market outlooks may also be influenced by the US economy’s direction, particularly in light of labor market data and central bank decisions. A possibly more lenient central bank policy than expected could further boost gold prices, potentially moving it towards the $4,000 mark.

Summary

Dubai's gold market is once again in motion, and the period before Eid Al Adha is particularly favorable for both buyers and investors. The stable demand, festive shopping, and global economic uncertainties together indicate that gold continues to play a key role in wealth preservation. Accordingly, Dubai’s gold market remains a key center on the international stage.

(Source of the article: Dubai Jewellery Group communiqué.)