On June 19, 2025, the price of 24K gold is around AED 408.75/g, while that of 22K is AED 378.50. Gold has fallen from recent highs, even if it is still high by historical standards (for example, on June 13, 24K hit AED 414/g).
Why Are Prices Dropping?
International Monetary Policy
Gold’s appeal as a non-yielding asset has diminished as a result of the U.S. Federal Reserve signalling less urgency on rate cuts bank.
A Comparison of Macro Pressure and Geopolitical Drag
Despite the fact that gold has benefited from Middle East tensions, macroeconomic reasons such as rate direction are outweighing geopolitical implications.
The Opinions of Analysts
Citi says that gold prices could drop by 20–25% next year, reaching $2,500–$2,700/oz (~AED 218–236/g).
goodreturns. Quant Mutual Fund predicts a brief drop of 12–15% in the upcoming months. On the flip side, UBS forecasts a rise to $3,200/oz, supported by safe-haven demand.
What This Means for Buyers
Challenging High Cost: Retail purchases remain expensive—less appealing compared to risk assets or alternate jewelry like diamonds.
Potential Pullback: If gold drops 12–25%, you could wait and save significantly.
Dollar-Cost Averaging: Making small, periodic buys can reduce timing risk in a volatile market.
The bottom line
Dubai gold prices appear to have peaked this cycle based on current trends. Analysts predict a 20% correction, thus holding off on making a big purchase would result in better value. Stripped, occasional purchases, however, can be the correct course of action if you’re purchasing for your own use or as a little addition to your portfolio.
