Dubai: Gold prices drop around Dh8 per gram bringing relief to shoppers

Gold prices saw a big drop of around Dh8 per gram in Dubai on Friday as the precious metal fell below $4,000 per ounce, giving relief to shoppers in the UAE who plan to buy jewellery now.

On Friday morning, 24K was trading at Dh478.25 per gram while 22K was selling at Dh442.75 per gram. The 22K variant of the yellow metal was trading above Dh450 on Thursday evening. Among the other variants, 21K and 18K also slumped to Dh424.25 and Dh363.75 per gram, respectively.

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Spot gold was trading at $3,963.96 per ounce on Friday morning, slipping below $4,000 due to small profit-taking after a strong rally.

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Rania Gule, senior market analyst for Mena at xs.com, said it appears that gold is undergoing a delicate phase, balancing between long-term bullish momentum and short-term profit-taking pressures, at a time when global markets are on edge ahead of upcoming US sentiment data.

“The underlying outlook for the precious metal remains positive in the medium term, as gold is heading for its eighth consecutive weekly gain — a sign of investors’ continued confidence in the demand for safe-haven assets despite the volatility in US monetary policy. Buyers have shown remarkable resilience in defending support near $3,946, suggesting that any current pullbacks still fall within the scope of natural corrections inside the broader upward channel that has persisted since the third quarter of the year,” she said.

Gule pointed out that several factors are driving this positive performance, the most notable being the prevailing cautious sentiment across markets.

“The ongoing US government shutdown adds to financial uncertainty and strengthens demand for defensive assets. Meanwhile, declines in Asian equities and a pause in the US dollar’s rally are giving gold technical breathing room to consolidate and potentially reclaim the $4,000 level, especially amid politically and economically tense global conditions,” she added.

• Dubai

Waheed Abbas

waheedabbas@khaleejtimes.com

Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.