Gold prices opened above Dh400 per gram in Dubai on Thursday, recovering some of the ground lost in earlier sessions after a sharp plunge of more than Dh20 per gram earlier this week.
According to the Dubai Jewellery Group, 24-karat gold was trading at Dh400.5 per gram in the morning session. Other variants also saw modest gains, with 22K at Dh371 per gram, 21K at Dh355.75, and 18K at Dh305.
The rebound follows a volatile week for the precious metal, which had soared to an all-time high of Dh420 per gram in Dubai and $3,500 per ounce globally on Tuesday. However, prices quickly retreated following reassurances from U.S. President Donald Trump, who stated he would not be seeking the resignation of Federal Reserve Chair Jerome Powell—news that helped cool market speculation and ease investor concerns.
On the international front, gold was trading at $3,327 per ounce on Thursday, marking a 1.27% uptick. Despite the recent dip, global prices remain near record highs, supported by lingering geopolitical tensions, uncertainty around trade policies—particularly between the U.S. and China—and continued central bank accumulation of the precious metal.
JP Morgan has projected that gold prices could surpass $4,000 per ounce in 2026, citing ongoing economic instability, inflationary pressures, and rising demand for safe-haven assets. The American banking giant expects the yellow metal to average $3,675 per ounce by the fourth quarter of 2025, with a potential peak of $4,000 in the second quarter of next year.
In Dubai, gold jewellers and analysts remain optimistic about the long-term trajectory of gold, with many predicting continued high prices driven by international market factors. However, they also note that elevated prices have led to a noticeable dip in consumer demand for gold jewellery.
“Buyers are holding back due to the high prices, and we’re seeing more residents come in to sell their old gold rather than make new purchases,” said a local jeweller in Deira Gold Souk.
Despite the slowdown in jewellery sales, gold continues to attract attention as a preferred investment, especially in uncertain times. With analysts forecasting continued volatility and potential new highs, many are watching closely for further price movements in the coming weeks.
