Dubai: Gold prices drop further on last day of 2025 after record-breaking year

[Editor's Note: Want to know the latest gold prices in Dubai? Click here]

Gold prices fell Dh3 per gram at the opening of markets in Dubai on Wednesday, the last trading day of the year.

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According to Dubai Jewellery Group data, the 24K gold price fell from Dh525 last night to Dh522 on Wednesday morning. Among the other variants, the gold prices of 22K, 21K, 18K, and 14K fell to Dh483.25, Dh463.5, Dh397.25, and Dh309.75 per gram, respectively.

Spot gold was trading at $4,332.47 per ounce, down 0.88 per cent at 9.30am UAE time.

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Ahmad Assiri, research strategist at Pepperstone, said precious metals have been under pressure due to aggressive sell-off due to profit-taking and correction, pushing gold down by five per cent in a day on December 29.

“The speed of the correction, as much as its magnitude, was the key element behind the intensity of the market reaction.

The move appears to have been driven by a combination of profit-taking and the unwinding of leveraged positions. Silver was at centre of action after the recent rapid surge, understandably prompting participants to lock in gains,” added Assiri.

In addition, thin seasonal liquidity also played a meaningful role. “At this time of year, market depth is typically thinner, leaving pricing more fragile and more sensitive to flows. In such an environment, relatively modest positioning adjustments can translate into pronounced price moves in the absence of the usual market depth,” he said, adding that the gold price continues to show resilience around the $4,350 levels, which coincides with the upper boundary of the previous price channel.

“As volatility subsides and liquidation pressures ease, this pullback could ultimately prove to be a renewed opportunity rather than a trend reversal in gold,” Assiri concluded.

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.