Gold prices eased on Thursday after hitting a record high in the previous session due to the easing of geopolitical tension.
At the opening of trading in Dubai on Thursday, the price of 24-karat gold dropped by Dh8.5 per gram to Dh577.75, retreating from the sharp gains recorded a day earlier. On Wednesday, prices surged by more than Dh15 per gram as investors reacted to heightened geopolitical friction between the United States and Europe linked to comments surrounding Greenland.
Other gold variants also recorded declines during early trading. The price of 22-karat gold slipped to Dh535 per gram, while 21-karat gold was quoted at Dh513. Eighteen-karat gold fell to Dh439.75 per gram, and 14-karat gold declined to Dh343, according to data from Dubai’s gold market.
In international markets, spot gold was trading around $4,800 per ounce at 9am UAE time on Thursday. The pullback followed signs of easing risk sentiment after US President Donald Trump retreated from renewed tariff threats and stepped back from remarks suggesting the use of force to annex Greenland. These developments reduced demand for safe-haven assets, prompting some investors to lock in profits after gold’s recent rally.
The previous session had seen gold reach another all-time high as global uncertainty weighed heavily on market confidence. Escalating tensions across multiple regions, coupled with concerns about trade disruptions, had driven investors toward assets traditionally seen as stores of value.
Market analysts say gold continues to attract strong interest despite short-term price corrections. Abdelaziz Albogdady, market research and fintech strategy manager at FXEM, said the metal has benefited from a broad risk-averse mood in global markets. He noted that gold remains on a strong upward trajectory, supported by sustained inflows into gold-backed exchange-traded funds and ongoing purchases by central banks.
“These factors point to strong conviction in gold’s medium-term outlook,” Albogdady said, adding that uncertainty in regions such as Eastern Europe and the Middle East continues to underpin investor demand.
In the UAE, gold price movements are closely watched by both investors and consumers, particularly during periods of heightened volatility. While the latest decline offers some relief to buyers, traders say pricing remains sensitive to political developments and shifts in global economic policy.
As markets assess the durability of the recent easing in geopolitical tensions, analysts expect gold prices to remain responsive to headlines, with any renewed instability likely to revive demand for the precious metal.
