Dubai Gold Prices Slip After Record Highs — More Declines Expected?
<h3><strong>Dubai Gold Prices Ease After Record Run: Is the Rally Losing Steam?</strong></h3><p>After weeks of record-breaking highs, <strong>Dubai’s gold market opened lower on Thursday</strong>, mirroring the global pullback in bullion prices. Retail gold buyers across the UAE are now closely watching the market to decide whether this is a temporary dip or the beginning of a broader correction.</p><p>At <strong>7:30 am</strong>, retail prices for <strong>24-karat gold</strong> slipped to <strong>Dh472.50 per gram</strong>, down from <strong>Dh476.25</strong> the previous evening — a decline of nearly <strong>0.8%</strong>. Similarly, the popular <strong>22-karat variety</strong> dropped to <strong>Dh437.50</strong> from <strong>Dh441.00</strong>. This cooling follows an extraordinary rally that pushed global gold prices beyond <strong>$4,380 per ounce</strong> just last week — a record high driven by geopolitical tensions, inflation worries, and aggressive central-bank buying.</p><h3><strong>Global Market Influence</strong></h3><p>Globally, <strong>spot gold prices rebounded slightly</strong>, rising around <strong>0.9% to $3,967 per ounce</strong> in early Thursday trading. The modest bounce came after a sharp four-day selloff, during which bullion fell nearly <strong>5%</strong> as traders recalibrated their expectations of <strong>US interest-rate cuts</strong>.</p><p>US Federal Reserve Chair <strong>Jerome Powell’s comments</strong> on Wednesday added further uncertainty. While the Fed delivered a <strong>quarter-point rate cut</strong>, Powell dismissed the possibility of another reduction in December. The divided voting within the central bank — the third consecutive meeting with dissent — highlighted the lack of consensus on monetary easing.</p><p>This policy split, combined with the temporary <strong>US government shutdown earlier in October</strong>, has limited access to fresh economic data, making it harder for traders to gauge the true pace of economic recovery. Since gold offers no yield, <strong>higher interest rates typically make the metal less attractive</strong>, leading to reduced investor demand.</p><h3><strong>Why Prices Are Cooling</strong></h3><p>The latest pullback comes after an intense surge that many analysts described as “overheated.” Technical indicators had begun flashing <strong>overbought conditions</strong>, and renewed optimism around <strong>US-China trade relations</strong> further eased demand for safe-haven assets like gold.</p><p>US President <strong>Donald Trump</strong> and China’s <strong>President Xi Jinping</strong> are expected to meet in <strong>South Korea</strong> to finalize a <strong>trade détente</strong>, which could include rolling back tariffs and lifting export restrictions. This positive outlook has prompted investors to reduce their defensive positions in gold.</p><p>Additionally, <strong>profit-taking</strong> among both retail and institutional investors has accelerated. Data from exchange-traded funds (ETFs) linked to gold show notable <strong>outflows</strong> this week, suggesting that traders are locking in gains after the record-breaking rally.</p><h3><strong>Dubai’s Competitive Edge Remains</strong></h3><p>Despite the correction, <strong>Dubai remains one of the world’s most attractive gold-buying destinations</strong>. The emirate’s <strong>tax advantages, transparent pricing, and craftsmanship standards</strong> continue to draw both local and international buyers. Even with current volatility, prices in Dubai are still <strong>cheaper than in India and many other global markets</strong>, giving shoppers a compelling reason to invest or gift gold ahead of the festive season.</p><p>However, many jewellers in Dubai report a temporary slowdown in footfall as buyers wait for a clearer price direction. “Customers are cautiously optimistic,” one gold retailer said. “They expect prices to stabilize before Diwali and the year-end shopping rush.”</p><h3><strong>Outlook: More Declines Possible</strong></h3><p>While gold remains <strong>up nearly 50% year-to-date</strong>, experts believe the short-term trend may stay bearish unless economic or geopolitical tensions re-escalate. Analysts suggest that prices could see further declines if the <strong>US dollar strengthens</strong> and <strong>bond yields rise</strong>, both of which traditionally pressure gold.</p><p>Still, long-term fundamentals remain strong. Central banks across Asia and the Middle East continue to <strong>accumulate gold reserves</strong> as a hedge against currency depreciation and fiscal imbalances. This ongoing institutional demand could prevent any drastic collapse in prices.</p><p>In summary, <strong>Dubai’s gold market appears to be entering a cooling phase after months of relentless gains</strong>. For buyers, this dip might present a valuable opportunity — but timing will be key. Whether gold resumes its upward march or continues to slide will depend on how global monetary policies and trade developments unfold in the coming weeks.</p>