Gold prices in Dubai dropped sharply on Monday, with the cost of the precious metal plunging over Dh3 per gram amid a global decline in early trading. The dip comes as spot gold prices fell more than one percent worldwide, marking a volatile start to the trading week.
As of 9 a.m. UAE time, the price of 24K gold in Dubai slid to Dh318.25 per gram, down from Dh321.5 at the weekend close, a decrease of Dh3.25 per gram. Other variants also saw significant declines: 22K fell to Dh294.5 per gram, 21K dropped to Dh285.25, and 18K was priced at Dh244.5 per gram.
Globally, spot gold was trading at $2,627.91 per ounce, down 0.91 percent. The yellow metal’s recent performance highlights its ongoing vulnerability to geopolitical and market fluctuations. Last week, gold experienced a four percent drop following the announcement of a ceasefire between Lebanon and Israel but rebounded later in the week, reflecting cautious buying interest at high historical levels.
Analysts pointed to technical signals as indicators of future price movements. Alex Kuptsikevich, chief market analyst at FxPro, noted that gold prices found support at $2,600 per ounce, a level that also served as a floor in late September and early October. However, he emphasized that the sharp drop suggests market bears are gaining control.
“The price fell below the 50-day moving average after a brief consolidation attempt, signaling bearish momentum,” Kuptsikevich said. “A further dip below $2,600 could set $2,540 as the short-term target for sellers, with potential movement towards $2,400. Long-term, the price could head toward the $2,000 per ounce mark.”
Despite the bearish outlook, there is potential for recovery. Kuptsikevich added that a weekly or monthly close above $2,670 could signal a return to bullish territory, with prices breaking back above the 50-day moving average.
Gold’s price fluctuations continue to reflect broader market uncertainties, with geopolitical developments and investor sentiment playing critical roles. Dubai’s gold market remains a focal point for traders and consumers, as global trends directly influence local prices.
For now, investors are closely monitoring price movements, with technical levels providing critical benchmarks for short- and long-term strategies.
