Gold prices recorded a sharp decline in Dubai on Friday, easing by about Dh8 per gram as global spot prices fell below the $4,000-per-ounce mark. The drop offers a welcome relief to jewellery buyers in the UAE following weeks of soaring prices.
According to Dubai Jewellery Group data, 24K gold was trading at Dh478.25 per gram on Friday morning, compared to Dh486.25 the previous evening. Similarly, 22K fell to Dh442.75 per gram from above Dh450, while 21K and 18K dropped to Dh424.25 and Dh363.75 per gram, respectively.
In international markets, spot gold was trading at $3,963.96 per ounce after briefly touching record highs earlier this week. The decline was largely attributed to profit-taking by investors following a strong rally that had lifted gold prices to unprecedented levels.
Analysts said the latest pullback reflects short-term market adjustments rather than a reversal of gold’s broader upward trend. “It appears that gold is undergoing a delicate phase, balancing between long-term bullish momentum and short-term profit-taking pressures,” said Rania Gule, senior market analyst for MENA at XS.com.
Gule noted that while prices have softened, the medium-term outlook for gold remains positive. “Gold is heading for its eighth consecutive weekly gain — a clear sign of investors’ continued confidence in the demand for safe-haven assets despite volatility in US monetary policy,” she said.
She added that investors continue to defend key support levels near $3,946 per ounce, suggesting that the current dip remains within the scope of a natural correction. “Any pullbacks still fall within the broader upward channel that has persisted since the third quarter of the year,” Gule explained.
Several factors continue to underpin the precious metal’s performance, including heightened market caution and ongoing geopolitical tensions. Gule pointed to the US government shutdown, weakness in Asian equity markets, and a pause in the US dollar’s recent rally as factors contributing to gold’s resilience.
“The ongoing US government shutdown adds to financial uncertainty and strengthens demand for defensive assets,” she said. “Meanwhile, declines in Asian equities and a pause in the dollar’s rally are giving gold technical breathing room to consolidate and potentially reclaim the $4,000 level.”
Despite Friday’s correction, analysts believe the outlook for gold remains robust as investors seek refuge from global economic instability and political tensions. For UAE shoppers, however, the short-term dip offers an opportune moment to purchase gold at slightly lower prices.
