Gold prices in Dubai edged lower on Friday following a surge of over Dh2 per gram on Thursday as global prices reached a one-month high. The decline reflects broader global trends and market reactions to economic and geopolitical developments.
Data from the Dubai Jewellery Group revealed that 24K gold was trading at Dh328.75 per gram, down Dh0.25, while 22K gold stood at Dh304.25 per gram. Similarly, 21K and 18K gold were priced at Dh294.5 and Dh252.5 per gram, respectively. Despite the dip, gold has gained nearly Dh3 per gram throughout the week.
On the international market, gold prices slipped 0.24% to $2,712.81 per ounce, following a brief rally earlier in the week.
Market Factors Influencing Prices
Vijay Valecha, Chief Investment Officer at Century Financial, attributed the fluctuations to movements in the US dollar and Treasury yields. “Gold prices were tracking a drop in the dollar and Treasury yields as mildly softer consumer inflation data spurred bets on lower interest rates this year,” Valecha explained.
Geopolitical developments also played a role, with a ceasefire agreement between Israel and Hamas dampening the momentum for further gains. Additionally, market participants were cautious ahead of economic cues from the United States and President-elect Donald Trump’s nomination announcement scheduled for Monday.
Hani Abuagla, Senior Market Analyst at XTB Mena, highlighted that the broader outlook for gold remains positive due to sustained geopolitical uncertainties. “The precious metal will continue to benefit from its safe-haven status as global uncertainties persist,” Abuagla noted.
Outlook for Gold Prices
While Friday’s decline reflects short-term adjustments, analysts believe that gold remains well-positioned for future gains. The interplay between inflation data, geopolitical stability, and central bank policies will likely shape its trajectory in the coming weeks.
Investors in Dubai and beyond are expected to monitor developments closely, particularly the anticipated economic indicators and global political shifts. Gold’s safe-haven appeal ensures it remains a focal point for traders and investors navigating an uncertain economic landscape.
