Dubai gold prices fell below the key Dh600-per-gram level, tracking a broader correction in international bullion markets as global gold prices eased below the closely watched $ 5,000-per-ounce mark.
In the local market, 24-carat gold dropped to around Dh598–Dh599 per gram, down from levels above Dh600 seen earlier in the week. Similarly, 22-carat gold retreated to the mid-Dh550 range. The pullback comes after a strong rally that pushed prices to elevated levels, prompting investors to take profits.
Spot gold slipped to just under $5,000 per ounce after recent gains. Market analysts attribute the decline primarily to technical correction and profit booking after bullion touched near-record highs. Softer trading volumes in some markets and short-term shifts in interest rate expectations also contributed to the price movement.
The easing in prices reflects ongoing volatility in global financial markets, where gold continues to respond to interest rate outlooks, inflation trends, and currency movements. When expectations for rate cuts rise, gold often strengthens as lower yields reduce the opportunity cost of holding non-interest-bearing assets. Conversely, stabilising yields and a firmer dollar can temporarily weigh on bullion.
For UAE buyers, a dip below Dh600 is significant on a psychological level. Retail demand in Dubai typically reacts quickly to price movements, particularly during seasonal buying periods. Lower prices may encourage fresh purchases, especially from investors and residents who view gold as a hedge against inflation and currency fluctuations.
In India, gold prices also declined in line with global trends, reflecting both international bullion weakness and currency adjustments. Movements in the rupee against the dollar continue to influence domestic pricing, just as dirham-dollar parity shapes pricing in the UAE.
Despite the short-term correction, analysts note that gold remains supported by structural factors, including geopolitical uncertainty, central bank buying, and investor appetite for safe-haven assets. The $ 5,000-per-ounce level globally and the Dh600-per-gram level locally are now key thresholds being closely monitored by traders.
Market participants expect near-term volatility to persist as investors assess global monetary policy signals and economic data releases. For now, the decline below Dh600 signals a pause in the recent rally rather than a decisive reversal, with bullion continuing to trade within a broader upward cycle driven by macroeconomic uncertainty.
