Dubai's Gold Market: Deals Amid Rising Prices

Dubai's Gold Market: Deals Amid Rising Prices

The price of gold has resumed its upward trend in Dubai, surpassing the 400 dirham mark per gram for 24 karat jewelry. According to data from the Dubai Jewellery Group, on the morning of July 4th, 24K opened at 403.75 dirhams, whereas the 22K, 21K, and 18K versions started at 374, 358.25, and 307.25 dirhams respectively. On the international market, gold was trading at $3,353.78 per ounce, marking a 0.15 percent increase.

Rising Prices, Declining Purchasing Interest?

Approaching the summer vacation period, many residents in the UAE traditionally purchase gold jewelry before traveling. However, the rising prices may deter many, as the cost of buying jewelry far exceeds levels seen in recent months. As a result, some might be rethinking their budgets or postponing their purchases.

Savvy Shoppers Can Still Strike Good Deals

According to Dubai's jewelry traders, smart purchasing is still possible in this environment. Most shops are attempting to offset rising gold prices with various promotions and discount schemes. These include lower making charges, gift packages, or even interest-free installment payment options.

One common discount is the reduction in making charges, potentially saving buyers several hundred dirhams on larger purchases. Additionally, some traders offer a buy-back guarantee, making jewelry purchased as an investment even more appealing.

Why Are Gold Prices Rising?

Several factors are currently driving up global gold prices. One of the most significant is uncertainty surrounding the U.S. economy, particularly debates over the independence of monetary policy. Markets react nervously to American political pressure, especially against central bank figures, weakening the dollar and prompting institutional investors to seek alternative reserve assets like gold.

Furthermore, trade tensions are contributing to the price increase, especially due to uncertainties around the expiration of "Liberation Day" tariff suspensions.

Is Now a Good Time to Buy?

While prices are currently higher, the Dubai jewelry market rapidly adapts to international trends, offering numerous discounts to buyers due to competition. Gold remains a popular investment vehicle, especially in a stable and well-regulated market like Dubai.

Those considering purchasing now should look around carefully, compare store offers, and monitor the daily fluctuations in gold prices. A well-timed purchase can still be rewarding in this higher-priced environment, particularly with a long-term perspective.

(Source: based on data from Dubai Jewellery Group.)