With U.S. President Donald Trump celebrating the passage of his much-touted “Big Beautiful Bill,” all eyes may be on Washington, but in the UAE, many shoppers are watching something else: the price of gold in Dubai.
So far, early signs suggest a potential dip in prices could be on the cards.
As of Wednesday morning, Dubai’s gold rate for 22K stands at Dh371.75 per gram, slightly down from Dh374 on July 1. Gold prices rose marginally on Thursday as investors remained cautious ahead of the release of the U.S. payroll data later in the day, which is expected to provide insights into the Federal Reserve’s policy trajectory.
In Dubai, gold rates rose, with 24-carat gold rising AED1.25 to AED403.75 and 22-carat gold gaining AED1.5 to AED374. Additionally, 21-carat gold rose AED1.25 to AED358.25, and 18-carat gold was up AED1.25 to AED307.25.
Retailers say there’s a “good chance” that prices may fall below Dh370 by the end of Friday, depending on how global markets react to the U.S. economic package. But for many gold buyers in the UAE, the ideal target remains Dh365 per gram — a level last seen just a week ago, which triggered a sharp uptick in jewellery purchases across the country.
How Is Trump’s Bill Connected to Gold?
The legislation — which permanently extends the 2017 tax cuts, increases defense and border security spending, and introduces deep cuts to social programs — is expected to stimulate U.S. economic growth. With both the Senate and House approvals complete, the bill now awaits Trump’s signature.
If markets view the bill as boosting the U.S. economy, it could lead to a stronger US dollar. A firmer dollar typically reduces investor appetite for gold, since the metal becomes more expensive in other currencies. This in turn could push global gold prices lower.
Indeed, global bullion rates have already dipped slightly, with prices down more than $10 an ounce this morning to around $3,336/oz.
Why It Matters for UAE Shoppers
Dubai’s gold prices are directly tied to global bullion rates and USD performance. When international prices fall or the dollar strengthens, local rates in dirhams often reflect that within hours.
The recent Dh365.5 price point brought a surge in footfall to jewellery stores across the UAE. A return to those levels could again encourage shoppers to buy, particularly ahead of the busy summer travel and wedding season.
Until then, both shoppers and retailers will be closely monitoring how markets digest the implications of Trump’s new legislation.
