UAE gold buyers hold back as prices hover near Dh375 mark

Dubai [UAE], July 14 (ANI): Gold shoppers in the United Arab Emirates (UAE) are pausing their purchases as prices remain elevated at around 374.5 dirhams per gram for 22K gold, as reported by Gulf News.

This price point, unchanged since the weekend, has caused a noticeable drop in footfall. Some stores at the Dubai Gold Souq reported a decline in customer visits by 30 per cent to 50 per cent.

"Every time the Dubai rate pushes back to Dh 375 or so, shoppers hit a 'pause'," said a retailer. "Shoppers will not be swayed by talk of gold prices shooting up higher from these levels. They will prefer to wait."

According to Gulf News, with the current global uncertainty, particularly renewed US trade tariff threats, gold is once again attracting investors, which continues to drive up prices.

The highest level recorded in the past month was Dh 383 on June 15. If market trends hold, the local rate could climb another Dh1 or Dh2 soon, depending on how bullion reacts to global developments.

This latest spike is linked to U.S President Donald Trump's announcing 30 per cent tariffs on the EU, unless a deal is struck by August 1. French President Macron has hinted at retaliatory measures, adding to the uncertainty.

"Fortunately, the peak season for gold buying in the UAE is over, and all that we are seeing now are some impulse shopping for jewellery, which happens even when prices are at a peak," said a retailer.

"The other bit of shopping has to do with DSS gold raffles, but that too came down after the rise from Dh 370 levels to Dh 374," the retailer further added.

Gold prices in India breached the Rs 1 lakh per 10-gram mark to reach an all-time high level last month. As of today, the price of Gold is trading at 98,043 for 10 grams on the Multi Commodity Exchange (MCX). (ANI)