Gold prices in Dubai fell by Dh3 per gram at the start of trading on Wednesday, marking the last market day of the year. According to Dubai Jewellery Group data, the 24K gold price dropped from Dh525 on Tuesday night to Dh522 on Wednesday morning. Other popular gold variants also saw declines, with 22K gold at Dh483.25 per gram, 21K at Dh463.5, 18K at Dh397.25, and 14K at Dh309.75 per gram.
Internationally, spot gold was trading at $4,332.47 per ounce at 9:30 a.m. UAE time, down 0.88 per cent. Analysts said the drop reflected a combination of profit-taking and market correction after recent rapid gains in precious metals.
Ahmad Assiri, research strategist at Pepperstone, said, “Precious metals have been under pressure due to aggressive sell-off due to profit-taking and correction, pushing gold down by five per cent in a day on December 29. The speed of the correction, as much as its magnitude, was the key element behind the intensity of the market reaction. The move appears to have been driven by a combination of profit-taking and the unwinding of leveraged positions. Silver was at centre of action after the recent rapid surge, understandably prompting participants to lock in gains.”
Assiri added that seasonal factors also influenced the market. “At this time of year, market depth is typically thinner, leaving pricing more fragile and more sensitive to flows. In such an environment, relatively modest positioning adjustments can translate into pronounced price moves in the absence of the usual market depth,” he said.
Despite the decline, analysts noted that gold continues to show resilience. Assiri observed that the metal’s price remains near $4,350 per ounce, which aligns with the upper boundary of its previous trading range. He said the recent pullback could present a buying opportunity rather than signaling a long-term trend reversal. “As volatility subsides and liquidation pressures ease, this pullback could ultimately prove to be a renewed opportunity rather than a trend reversal in gold,” he added.
Market watchers noted that end-of-year trading tends to see thinner liquidity, which can exaggerate price movements. Investors often adjust positions to lock in gains before the new year, which can create sudden swings in the market.
Overall, the modest decline in gold prices on Wednesday reflects a mix of profit-taking, seasonal liquidity factors, and short-term market corrections. Analysts remain cautious but suggest that the fundamentals supporting gold, including its status as a safe-haven asset, remain intact as the global market enters 2026
