Will Dubai gold rates drop below Dh370? Trump’s ‘big beautiful bill’ sparks hope

With US President Donald Trump’s long-anticipated budget bill finally passed by Congress and Senate, gold shoppers in the UAE are watching closely to see if this could finally trigger a drop in Dubai gold prices, which have remained stubbornly high in recent weeks.As of now, the price of 22-karat gold in Dubai stands at Dh371.75( $101.20) per gram, slightly down from Dh374($101.85) on July 1. At 9:30am today, it hovered at Dh372.75 ($101.46), but this wasn’t yet the price break that shoppers had been holding out for.Retailers, however, are optimistic that gold prices could soon fall below the Dh370 threshold.“There are ready shoppers waiting for the right gold price drop anything between Dh360-Dh365 ($98.03-$99.32) will set off ‘relief buying’,” a gold retailer told Gulf News. “We believe quite a lot of UAE resident-shoppers will actually start their summer vacations after July 15. They are the ones waiting to see if gold price will drop.”The Dh365 ($99.32) per gram level is emerging as a psychological tipping point for many gold buyers. Just a week ago, the gold price touched Dh365.5, which prompted a notable increase in footfall and transactions in local jewellery stores."It's not easy for shoppers, but there is more acceptance of Dh360-Dh365 levels," another retailer told Gulf News. "Whereas earlier, anything over Dh350($95.31) would put off shoppers. It's been the case each time gold prices rise at some point, shoppers decide to accept the reality."The trend signals that buyers are increasingly adapting to higher gold price ranges, but a return to the Dh360–Dh365 level is seen as a crucial motivator to trigger larger-scale purchases before the summer travel season begins.Much of the hope for a decline in prices now hinges on how global financial markets react to the newly approved US budget bill, which President Trump has proudly referred to as his “big beautiful bill”. The bill has cleared both Senate and Congress, and now awaits Trump’s signature.If the legislation spurs faster economic growth in the US, as intended, it could strengthen the US dollar. A stronger dollar often dampens investor appetite for gold, which is traditionally seen as a safe-haven asset during times of economic uncertainty or currency weakness.Currently, gold is trading at $3,336 an ounce, with prices down by just over $10 per ounce this morning. The market remains cautious, but a further strengthening of the dollar could put more downward pressure on global gold prices, and by extension, Dubai’s local gold rate.Retailers remain on standby, closely watching both global and regional market cues. While shoppers are still hoping for prices to ease back to the Dh360($98.03) range, the decision to buy may ultimately come down to personal timing, especially with the summer vacation season approaching fast.The next 24 to 48 hours could be crucial in determining how the Dubai gold rate adjusts in response to international developments and whether Trump's bill will provide the much-needed relief UAE shoppers have been hoping for.