August 13, 2025 | Dubai, UAE: The Dubai Gold Price Drop has been making headlines this month, with rates sliding to their second-lowest point in August. On Tuesday, 22K gold was priced at Dh374.75 per gram, a notable dip even as US President Trump announced that there would be no tariffs on gold. For UAE shoppers and investors, the big question now is: could the Dubai Gold Price Drop continue in the days ahead?

Why Jewellery Demand Is Still Weak

Despite the recent Dubai Gold Price Drop, jewellery stores in Dubai aren’t exactly bustling. Instead, shoppers are leaning heavily towards gold bars and coins. Many jewellers say that unless prices drop closer to Dh360 per gram, the jewellery counters will remain quiet.

“Even our regular jewellery customers are buying gold for investment, not to wear,” said one retailer. The logic is simple at higher prices, people see gold as a long-term store of value, not an accessory. The Dubai Gold Price Drop would need to be bigger to tempt those who buy purely for adornment.

Market Factors Driving the Dubai Gold Price Drop

The recent movement in gold prices has been shaped by more than just Trump’s announcement. Earlier this month, the US briefly imposed a hefty 39% tariff on certain gold bars before reversing the decision. That short-lived policy actually boosted interest in smaller gold bars globally, including in Dubai.

In the last 30 days, the lowest price for 22K gold in Dubai was Dh365.25 on July 30. Retailers believe the Dubai Gold Price Drop could extend if ongoing US-China trade talks bring stability to global markets, reducing the need for investors to seek refuge in bullion.

Globally, gold is currently trading at $3,354 per ounce, down more than $50. If it falls further to $3,300 or below, experts say that could spark more interest in jewellery purchases in Dubai, particularly if the local rate heads toward Dh350.

What It Means for Shoppers and Investors

For everyday shoppers, the Dubai Gold Price Drop might feel like a signal to finally make that purchase. But seasoned investors are more cautious, they’re waiting for a decisive fall before committing large sums. A dip to Dh360 per gram, or even Dh350, would likely trigger a rush back to the gold souqs.

Right now, people with Dh10,000 to invest are mostly buying bars, not bangles. That’s because the making charges on jewellery add to the cost, and investors want every dirham to go toward pure gold value. Until the Dubai Gold Price Drop reaches a level where jewellery becomes attractive again, this trend is likely to continue.

Silver Shines as an Alternative

While gold dominates the headlines, silver is quietly enjoying its own moment. An ounce is trading at $37.88, up steadily over the past six months. Nearly 76% of UAE-based investors on some trading platforms are holding silver, hoping for further gains.

Analysts, however, warn that silver could face resistance if prices hit the $37.4–$38.1 range, meaning a pause in the rally is possible without a fresh market catalyst. Still, for those looking beyond gold, silver’s performance offers another option , especially if the Dubai Gold Price Drop doesn’t reach the levels jewellery buyers are waiting for.

Looking Ahead

The next few weeks will be crucial for the gold market in Dubai. If the Dubai Gold Price Drop continues toward Dh360 or below, jewellers may finally see customers returning for traditional purchases. But if prices hover where they are now, the bars-and-coins trend will likely dominate.

For now, both shoppers and investors are watching closely, not just for daily price updates, but for the bigger economic signals from trade talks, US policy changes, and global market shifts. The Dubai Gold Price Drop story isn’t over yet, and for those who love both the shine and the security of gold, the coming days could be an opportunity worth waiting for.

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