A shopper views a display of elaborate gold jewellery at a store in Dubai amid slowing retail sales. Photo: AFP
Dubai: Gold prices in Dubai, United Arab Emirates (UAE) were steady on Sunday, August 3, with 24-carat gold trading at Dirham 405.25 (Rs 9,627.29) per gram, according to the Dubai Jewellery Group.
The 22-carat gold price stood at Dh 375.25 (Rs 8,914.60) per gram, maintaining its position above the key Dh 370 (Rs 8,789.88) psychological threshold, which has impacted retail jewellery demand across the country.
Other gold rates as of Sunday were:
Prices were unchanged from Saturday, August 2, but slightly higher than Friday’s, August 1, closing levels. 24-carat gold was Dh 403.75 per gram on Friday, while 22-carat stood at Dh 374.00, reflecting a modest upward trend.
Jewellery retailers in Dubai and other emirates report a continued slowdown in gold jewellery sales as prices remain elevated, as reported by Khaleej Times.
Promotional offers, including 0 percent making charges from leading jewellers such as Damas, have had limited impact. Buyers are either deferring purchases or switching to diamond and gemstone jewellery, where deeper discounts are available.
According to the latest data from the World Gold Council (WGC), gold jewellery sales in the UAE fell to 7.7 tonnes during Q2 2025, down from 9.2 tonnes during the same period last year — a 16 percent decline and the lowest quarterly figure in over two years.
“High gold prices have made it harder to sustain jewellery sales, especially in tourist-reliant markets like the UAE,” said Andrew Naylor, WGC’s Head of Public Policy, in remarks carried by Gulf News.
Retailers note that despite steady store walk-ins, actual purchases remain minimal. Shoppers are responding only to sharp price dips or deep discounts, with even new collections failing to gain traction.
Meanwhile, demand for gold coins—which earlier served as a popular investment alternative—has also weakened under soaring prices. According to WGC, even smaller denomination coins are now beyond the reach of many middle-income investors.
However, gold bars remain in demand, particularly among high-net-worth individuals and fractional investors using digital platforms to accumulate gold in smaller quantities.
This post was last modified on August 3, 2025 7:16 pm