Dubai gold buyers are cautious as gold prices fluctuate amid ongoing regional tensions. Shoppers are carefully observing the market before making purchases, and traders report slower activity than expected. Many customers at Dubai’s Gold Souk are checking rates without completing transactions, reflecting uncertainty in the market.
Gold prices fell by around Dh30 to Dh35 per gram earlier this week. Traders said both buyers and sellers are holding back, unsure whether prices will drop further or recover in the coming days. The sudden movement surprised many, as residents had anticipated gold to rise due to regional escalation.
As of Wednesday, Dubai Jewellery Group data showed 24K gold at Dh622.7 per gram and 22K gold at Dh570.8 per gram. Despite the drop, jewellery shops have not experienced the usual surge of buyers. Mohan, a trader at the souk, said that many customers are waiting for further changes before committing to purchases.
Sellers are also hesitant. Affan Sada, another gold trader, explained that this pause has reduced trading activity across the souk. “When prices went up earlier, residents came to sell jewellery. Now after this sudden drop, many are unwilling to sell,” he said. The market is in a temporary holding pattern as both buyers and sellers try to understand the trend.
Traders observed that the reaction is unusual because gold typically rises during geopolitical tensions, as investors move toward safe-haven assets. However, the market this week defied traditional patterns. Afaf Akram from Al Manar Gold and Diamonds said that when the market opened lower than expected, it surprised both traders and customers alike.
As a result, many shops see customers mainly checking rates rather than completing transactions. Footfall remains steady, but purchases are limited while buyers monitor trends closely. Dubai resident Abdul Rahim had planned to sell some of his old jewellery but decided to wait. “I expect prices may rise again, so I will observe the market for a few more days,” he said.
For now, patience dominates both buying and selling decisions. Traders and customers alike are watching the market carefully before making the next move. Dubai gold buyers remain cautious, and the market continues to adjust amid uncertainty and regional tensions.
