05/03/2026 05:01 AST
Amid market volatility, shoppers are not yet buying jewellery. At Dubai's Gold Souk this week, customers have been enquiring about gold rates in the UAE and walking out with the information.
Despite gold prices dropping by around Dh30 to Dh35 per gram earlier this week, traders said they expected a rush of buyers, but it did not materialise. Instead, both buyers and sellers appear to be holding back, unsure whether the market will fall further or bounce back in the coming days.
The sudden drop caught many traders by surprise. With the regional escalation, some residents expected gold prices to rise rather than fall when trading opened on Monday. As of Wednesday, Dubai Jewellery Group data show that 24K gold is around Dh622.7 per gram, while 22K gold is at Dh570.8 per gram.
Despite the drop, jewellery shops in areas such as the Gold Souk have not seen the usual rush that follows a sudden price decline.
"Normally when prices fall this much, buyers throng to take advantage," said Mohan, a trader at the souk. "But not this time, many are waiting, hoping for the price to fall further. They are observing the market instead of buying immediately."
Traders said residents planning to sell their gold are also holding back, expecting the market to recover. Affan Sada, a gold trader at the Gold Souk, said the situation has led to a temporary pause in trading activity.
"When prices went up earlier, many residents came to sell their jewellery," he said. "But after this sudden drop, they are not willing to sell. They believe the price could go up again in the coming days."
Taders noted that the reaction is unusual because gold traditionally rises during periods of geopolitical tension, and investors move towards safe havens. However, market movements earlier this week did not follow the pattern many expected.
"People were expecting prices to surge because of global tensions," said Afaf Akram from Al Manar Gold and Diamonds. "But when the market opened, and prices were lower, it surprised traders and customers. Now everyone is trying to understand the trend before making a decision."
As a result, many shops are seeing customers walk in mainly to check the rate rather than complete transactions. Traders said footfall remains steady, but purchases are limited as customers continue monitoring the market.
Among those watching the trend closely is Dubai resident Abdul Rahim, who had planned to sell some of his old jewellery earlier this week. "I was thinking of selling, but when prices suddenly dropped, I decided to wait. I feel the price may go up again, so I will observe the market for a few more days."
For now, traders said many customers are choosing patience over quick decisions. "In this situation, both buyers and sellers are waiting. People are watching the market closely before making their next move," said Mohan.
Khaleej Times
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