Dubai: Gold prices in Dubai are once again hovering near record levels, testing the patience and purchasing power of jewellery buyers while strengthening the metal’s appeal among long-term investors.
Retail gold rates across the emirate edged higher this week, tracking gains in global bullion markets as investors sought safe-haven assets amid ongoing economic uncertainty and shifting expectations around interest rates. Traders said demand remains mixed, with strong investor interest offset by caution among price-sensitive jewellery shoppers.
Jewellery retailers across Dubai’s traditional gold souks and malls reported a slowdown in discretionary purchases, particularly for heavier designs. “Customers are browsing, but many are waiting for a price correction before committing,” one retailer said. Smaller-weight pieces and exchange offers remain more popular as buyers look to manage costs.
At the same time, bullion demand has stayed resilient, supported by investors viewing gold as a hedge against inflation, currency fluctuations and geopolitical risks. Market analysts noted that sustained high prices have not deterred long-term buyers, who continue to accumulate gold through bars, coins and digital investment platforms.
“Gold at these levels reinforces its role as a store of value,” said a Dubai-based commodities analyst. “While jewellery demand may soften in the short term, investor interest tends to rise when prices show strength and stability.”
Global gold prices have been supported by expectations that major central banks may begin easing monetary policy in the coming months. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets such as gold, adding to its appeal. Ongoing geopolitical tensions and uneven global growth prospects have also contributed to safe-haven demand.
In the UAE, gold plays a dual role as both an investment asset and a cultural staple, particularly during weddings and festive seasons. However, retailers said prolonged high prices could delay purchases, pushing some buyers to opt for lighter designs or postpone buying altogether.
Despite near-record levels, industry insiders remain cautiously optimistic. Dubai’s position as a regional gold trading hub continues to attract buyers from across the Middle East, South Asia and beyond, many of whom view price volatility as part of a longer-term investment strategy.
As markets remain sensitive to global economic signals, gold prices are expected to stay volatile in the near term – keeping investors alert and jewellery buyers watchful for any signs of relief.
