The UAE gold market is entering one of its most critical sales periods, with Dubai gold prices stubbornly holding above Dh370 per gram. The success of upcoming sales heavily depends on whether prices will ease from these levels and if tourists from Saudi Arabia and other countries visiting the UAE for the Eid holidays will purchase gold and jewelry.
The local market anticipates a strong influx of Saudi visitors during the first week and weekend of June. “With Saudi gold rates at Dh380 per gram for 22K and Dubai at Dh372.5, there is hope for better sales next week,” said a jewelry retailer operating in both Saudi Arabia and the UAE. “I have already received bookings for high-value jewelry from regular Saudi buyers visiting Dubai.” (Saudi Arabia also imposes a 15% VAT.)
Whether Eid sales can offset the declining demand since May 20 remains uncertain. Gold sales have steadily dropped after Dubai gold rates surged from Dh360.25 to Dh367.25 in one day on May 20 and have since pushed beyond Dh370. The highest recorded price during this period was Dh374.75 on May 24 and 25.
Industry insiders are in discussions with local hotels to gauge Saudi visitor bookings for Eid. “Even a modest increase in Saudi tourist numbers could significantly boost gold sales, especially for higher-priced items,” sources said.
Gold sales suffered a steep decline in May. “The last seven days have been the second weakest period this year, after early April when prices hit Dh381 amid US tariff announcements,” a jeweler explained. “This recent price surge has led to a 20%-25% drop in pre-holiday spending, creating a tough market environment.”
The UAE gold sector hopes to regain momentum if demand picks up during the early June Eid period.
