Gold prices in Dubai drop to less than 490 dirhams ahead of Eid, and buyers return to the market / Photo: File
The City of Gold is living up to its name this week, but in a way that will keep shoppers smiling even after the festive rush. Following the sharp global sell-off, gold prices in Dubai fell significantly, bringing prices down to levels not seen in recent months. For residents and tourists who have been waiting for the holiday buying season, the recent decline turns into a second chance. With the price of 22-carat gold falling below Dh490 per gram, jewelery stores and markets continue to attract sustained interest, even as peak festive demand begins to wane.
Dubai gold prices today
Dubai’s gold market entered a softer phase a few days after Eid, with prices falling sharply across all major categories bringing relief to buyers who were reluctant to buy.
The most notable decline was 22-carat gold, which fell below 490 dirhams per gram, a psychological limit that often affects demand in the retail sector. But the correction is not limited to one chip. Across the board, interest rates fell after weeks of strong gains:
- The price of 24-carat gold now ranges between 525 and 530 dirhams per gram.
- The price of 22-carat gold fell to less than 490 dirhams per gram
- 21-carat gold is trading near Dh470 per gram
- 18-karat gold fell to about 400-405 dirhams per gram
This decline comes in the wake of a global sell-off in bullion markets, as gold lost momentum after approaching record levels earlier this month. The strengthening US dollar and changing expectations around interest rate cuts have reduced the appeal of gold in the short term, resulting in a decline that is now evident in Dubai’s retail market.
Peak returns for Eid 2026
The timing of the price drop has given a timely boost to post-Eid shopping activity across Dubai.Jewelry stores and traditional gold markets are witnessing a noticeable increase in demand after Eid al-Fitr. For many, gold remains an essential part of festive spending, whether for personal use or as a gift.Retailers say the mood has changed compared to earlier in the month. Whereas customers were previously hesitant, they are now actively exploring purchases, encouraged by more attractive price points.Meanwhile, the market is not witnessing a full rally yet. Some buyers are still adopting a wait-and-see approach, hoping that prices will decline further in the coming days before making larger purchases.
What lies ahead?
The main question now is whether this decline is a short-term correction or the beginning of a longer-term downtrend.Market indicators remain mixed. On the one hand, continued strength of the US dollar and uncertainty about interest rate cuts may keep prices under pressure. On the other hand, geopolitical risks and global economic concerns still have the potential to push gold higher again, as investors return to safe-haven assets.For now, analysts view the current phase as a correction after an extended rally rather than a complete reversal of the broader trend.
