Dubai Gold Prices Drop Dh34 in a Month—More Declines Ahead?

Gold just lost some of its glitter—and your wallet might thank you for it.

In just one month, Dubai gold prices have slid Dh34 per gram, falling from Dh420 in April to Dh386 by May 18, according to recent market data. Globally, gold prices have dipped from a record $3,500 per ounce to $3,201, marking an 8.5% drop. But wait—analysts say we could see it slip below $3,000 soon.

So what’s behind the price drop? It’s not magic—it’s momentum.

Analysts attribute the fall to a rising global risk appetite, easing geopolitical tensions, and progress in US-China trade talks—all of which reduce the demand for safe-haven assets like gold.

“We have seen a strong gold rally from $3,000 to $3,500, fuelled by concerns about tension between the US Federal Reserve and the US President Donald Trump administration, trade war and geopolitical tensions,” said Wael Makarem, financial markets strategist lead at Exness.

“But with things easing on both the trade and geopolitical fronts, risk appetite has improved—and this weighed on the gold price,” he added, noting that gold could drop below $3,000 if stability continues.

That growing appetite for risk is visible in stock markets too. Makarem pointed out a 20% rebound in US indices, with European ones also nearing record highs—a clear sign that investors are shifting focus.

Ahmed Negm, head of market research for MENA at xs.com, echoed the sentiment, saying that without fresh optimism in the gold market, “risky assets such as cryptocurrencies will be in high demand and rise.”

Not all experts are hitting the panic button, though.

Farah Mourad from Equiti believes the $3,000 mark will act as a “strong cushion,” especially since central banks and institutional buyers had scooped up gold when it was between $2,800 and $3,000. She suggests the correction was expected: “We are not worried about this correction because it corrected another momentum that was not that logical.”

Ole Hansen, head of commodity strategy at Saxo Bank, confirmed gold is seeing its steepest correction since 2023 but remains optimistic in the long run. “Several key structural drivers remain intact,” he said, referencing central bank demand, inflation hedging, and global debt concerns as long-term support pillars.

Bottom line? If you’ve been waiting for the gold price to dip before buying, this might just be your moment—but keep an eye on the $3,000 threshold. That’s where the real battle begins.