Dubai Gold Prices Drop Further Amid Record Highs Pullback
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Stronger dollar and profit-taking pressure UAE gold rates across all variants.
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Dubai gold prices continued to slide on Monday, with 24K gold recording another sharp drop as the market extended its pullback from last week’s record highs.
According to data from the Dubai Jewellery Group, the price of 24K gold fell from Dh589.50 per gram last week to Dh563.25 per gram, marking a decline of Dh26.25 per gram in early trading. The metal is now down more than Dh100 per gram from its recent peak of Dh666 per gram, reached on Thursday.
Other gold variants also moved lower. 22K gold dropped to Dh521.50 per gram, while 21K gold fell to Dh500.00, 18K to Dh428.75, and 14K to Dh334.25 per gram.
The latest decline follows a historic rally in the UAE gold market last month, when both 24K and 22K gold prices surpassed Dh600 per gram for the first time in Dubai.
Globally, spot gold was trading at $4,651.34 per ounce, down nearly five per cent, as the US dollar strengthened, putting additional pressure on precious metal prices.
Market participants in the UAE took advantage of last week’s high prices, with residents and investors selling gold and silver holdings to lock in profits. Many traders believed the market had reached a short-term peak, triggering increased selling activity as prices began to ease.
Rania Gule, senior market analyst at xs.com Mena, said the current wave of selling reflects a mix of behavioural and macroeconomic factors.
“In phases that follow the achievement of record highs, markets are rarely driven by a single factor; rather, investor decisions are shaped by fears of losing accumulated gains, the rapid flow of news, and shifts in broader macroeconomic expectations,” she said.
Analysts note that the direction of the US dollar, global interest rate expectations and investor sentiment will remain key drivers of gold prices in Dubai in the coming days.
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