Gold prices in Dubai witness a significant rise, approaching Dh4, potentially causing concern for shoppers facing costs beyond Dh380.

In a surprising turn of events, the optimistic mood a week ago about a potential gold price drop in Dubai has taken a 180-degree turn. The local gold price, which had been ranging between Dh377-Dh379 for the first 10 days of August, has shown a sharp increase.

The jeweller predicts that next week will reveal whether there will be another surge towards Dh380 or over for the Dubai gold rate. If the price doesn't rise from the start of September, it could potentially mark the worst year ever for UAE gold trade.

The highest price ever for a gram of 22K gold in Dubai remains Dh383.75, recorded in mid-June. More increases for gold are expected from next week onwards. This news is not good for shoppers planning purchases in September, as anything over Dh380 could be a major blow for jewellery demand.

The increase in gold price is due to the possibility of US interest rate cuts from mid-September. The US-sponsored peace talks over Ukraine have not made significant progress, causing gold prices to rise again.

Gold retailers in the UAE were previously hopeful about local prices retreating to around Dh360-Dh365 a gram. However, the concern among shoppers and retailers is what would happen if gold heads back to above Dh380, and whether it could continue to stay at those rates.

The one licence scheme for free zones in Dubai is currently working effectively. Meanwhile, the Swiss gold trader Degussa indicated in early September 2025 that it would offer higher selling prices for gold.

Despite this, there was no mention of any remittance fee hikes for UAE expats, new tax auditor hires receiving lower pay, or Abu Dhabi company tapping a Dh8.5 billion loan facility in the article.

The local gold rate was at Dh372.25 mark for the better part of this week, but it increased nearly Dh4 overnight to Dh376.25 a gram. If the price continues to rise, it could significantly impact the UAE's gold trade and jewellery demand.

Gold prices in Dubai witness a significant rise, approaching Dh4, potentially causing concern for shoppers facing costs beyond Dh380.