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Gold prices in Dubai are once again testing record territory, leaving jewellers anxious about consumer demand ahead of the festival season.

On Friday, the Dubai gold rate for 22K jumped by nearly Dh3 to Dh382.75 per gram—just Dh1 shy of its all-time high set in June. The rate has surged by more than Dh6 per gram over the past week, delivering another shock to shoppers.

“We had expected Dubai prices to hover around Dh370 or even dip to Dh365-Dh366 in early September,” said a leading gold retailer. “Nobody anticipated a quick return to the Dh380-plus levels.”

The timing is particularly challenging as the south Indian festival of Onam begins in early September, traditionally a strong sales period for jewellers in the UAE.

Retailers are now watching closely to see if upcoming promotions will help offset softer consumer sentiment. “The hope is that global gold prices will stabilise by late October,” said another retailer. “We rely heavily on Diwali and Dhanteras sales to rescue what has been a weak year so far.”

Global push for gold

Globally, gold closed the week at $3,447 an ounce, up $30, as investors piled into the metal ahead of a widely expected US interest rate cut in mid-September. Historically, rate cuts tend to boost gold prices.

Market volatility is also adding to gold’s safe-haven appeal after a US court struck down President Trump’s reciprocal tariffs, raising fresh uncertainties in global trade.

With both festival season demand and international market swings in play, the coming weeks will determine whether Dubai’s gold market can weather high prices—or see buyers step back further.

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