Gold prices in Dubai dropped sharply on Friday morning, falling below the Dh600 per gram mark as global bullion prices weakened and investor sentiment shifted following strong United States economic data.
The price of 24K gold opened at Dh599.75 per gram in Dubai, down from Dh610.75 per gram recorded on Thursday morning. The decline of Dh11 per gram within 24 hours reflects increased volatility in international gold markets and changing expectations around interest rates.
Other gold variants also registered losses in line with the broader trend. The price of 22K gold fell to Dh555.25 per gram, while 21K gold was trading at Dh532.50 per gram. Meanwhile, 18K gold dropped to Dh456.50 per gram, and 14K gold was priced at Dh356.00 per gram, reflecting consistent declines across all categories.
Globally, spot gold was trading at $4,977.92 per ounce as of 9.15am UAE time. Although the metal showed a slight rebound of around one per cent during early trading, it remained close to its lowest level in nearly a week. Gold prices had fallen about three per cent on Thursday, breaking below the key psychological threshold of $5,000 per ounce after heavy selling pressure in international markets.
Analysts said the decline in gold prices followed strong economic data from the United States, which reduced expectations that the Federal Reserve would cut interest rates soon. A labour report released Thursday showed that 130,000 jobs were added in January, exceeding market forecasts of 70,000 new positions. The stronger-than-expected figures signaled continued economic resilience, which typically weakens gold demand because higher interest rates increase the appeal of interest-bearing assets.
Vijay Valecha, chief investment officer at Century Financial, said the positive employment data reinforced the Federal Reserve’s cautious approach toward monetary policy. He noted that traders have now pushed expectations for the next interest rate cut to July instead of June.
Valecha said the development could cause temporary declines in gold and silver prices as investors adjust their positions. However, he pointed out that revisions to earlier employment figures suggest slower overall job growth than initially believed, which could provide support to precious metals over time.
Investors are now closely watching upcoming US inflation data for further clues about the direction of interest rates. Inflation trends remain a key factor influencing gold prices, as lower interest rates generally boost demand for the metal.
In Dubai, gold remains popular among investors and consumers, particularly during periods of price fluctuations, as buyers often view dips as opportunities to enter the market. However, continued uncertainty in global financial markets is likely to keep prices volatile in the near term.
