The Dubai gold rate remains firm at Dh360 per gram for 22K gold, but this price stability hasn’t sparked any buying interest among shoppers in the UAE.

According to retailers, the general shopper sentiment is to wait for a further drop in prices. Many residents are even postponing gold jewellery purchases they had planned for upcoming summer holiday trips.

“There is a real sense that current gold price levels are ‘inflated’,” said a gold retailer. “Shoppers seem to believe that if they wait, the rate will slip towards Dh350 a gram.”

Some walk-in customers are still picking up gold coins and bars as investment tools. Others are using the 12-month installment plans to manage higher gold prices, but overall demand remains tepid—particularly for gold exchange offers.

Dh355–Dh360 Range Holds Steady

In the past week, the Dubai gold rate has remained between Dh355-Dh360 per gram, only briefly touching Dh371 on May 11.

“In an ideal world, shoppers should have been enthused by the drop from Dh370+ levels to today’s Dh360,” another jeweller explained. “But this is not an ideal world. UAE shoppers are thinking whether there could be a Dh20-Dh30 a gram drop. That explains why many are in the mood to delay a purchase.”

Are Shoppers Justified in Expecting a Price Drop?

Gold retailers and market analysts say the mood among consumers is not without merit. Any positive signals about the US economy could push prices down further.

Last week, the rate hinted at a move towards Dh350 a gram, but sentiment reversed after Moody’s downgraded the US economy, creating fresh concerns.

“Easing geopolitical tensions, particularly between China and the US, have reduced demand for traditional safe-haven assets (such as gold),” said Daniela Hathorn, Senior Market Analyst at Capital.com. “Unless these tensions re-emerge or President Trump rekindles confrontation with trading partners, gold may remain on the back foot in the near term.”

Until then, UAE shoppers appear ready to wait and watch where prices head next.