Dubai: Gold prices steady after a week of downward trend; 24K drops to Dh476

After falling over Dh50 in a week, gold prices seemed to have steadied on Wednesday morning. The highly volatile market comes on the back of several reasons, according to some experts.

Globally, spot prices slid to $3959 per ounce at 9:30am UAE time, while silver continued its upward trend by increasing 0.63 per cent to stand at $47.5.

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In Dubai, the price of 24K stood at Dh476 on Wednesday morning, as opposed to Dh479 on Tuesday morning. Similarly, 22K, 21K and 18K also slipped to Dh440.75, Dh422.75, and Dh362.25 per gram, respectively. This comes after the prices dipped on Tuesday afternoon before climbing back up again.

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“What we’re ultimately seeing right now is investors leaning into risk, with many unwilling to miss out on this current rally in equities, which has many positive drivers from trade, policy, and tech,” said Josh Gilbert, Market Analyst at eToro, on the movement of gold prices. “That’s bad news for gold. With a potential trade deal on the horizon, the need for a safe haven will dwindle in the short term, putting the precious metal under pressure after an incredible run higher.”

He said that strong inflows into ETFs, interest rate cuts by the Fed, and rising demand for safe-haven assets amid geopolitical tensions have supported the increase of gold prices by 50 per cent in 2025. “However, there are now signs of fatigue,” he said. “Recent data show that gold-backed ETFs have recorded some of their largest outflows in months as investors lock in profits, suggesting that momentum is beginning to cool.”

He said that looking further ahead, lower rates, continued central bank buying, and investor demand for inflation hedges should help keep a floor under prices. “However, in the near term, a trade agreement between the world’s two biggest economies is easing some of the economic risks and geopolitical tensions that have led us to these new highs. If the positive drivers for equity markets persist, we will continue to see the heat come out of this gold rally,” he concluded.

• Dubai

Nasreen Abdulla

nasreen@khaleejtimes.com

Nasreen Abdulla is a Special Correspondent covering food, tech and human interest stories. When not challenged by deadlines, you’ll find her pulling off submissions on the jiu jitsu mats.