Commodities

Dubai’s Gold Shops Take a Hit as Record Prices Deter Buyers

  • Sales in some locations down by half as bullion nears $2,200
  • Speed of metal’s ascent has taken many investors by surprise
Dubai’s Gold Souk.Photographer: Kabir Uddin/Getty Images

The ever-higher prices reached by gold are turning Dubai’s traditional bazaar into more of a window-shopping experience.

Purchases are plummeting at the Gold Souk, according to salespeople at numerous shops, as bullion goes on a record run that’s now approaching $2,200 an ounce. Most locals are just browsing, leaving the majority of buying to tourists who are willing to pay more while they’re on vacation.