Gold Prices Dip in UAE: Buyers Eye Bigger Drop After Record Highs
Dubai: After touching record highs earlier this week, gold prices in the UAE slipped slightly on Thursday, giving buyers some relief and raising hopes for a larger correction in the coming days.
On Thursday morning, 22K gold was priced at Dh416 per gram, while 24K stood at Dh449.5 — down nearly Dh3 from Tuesday’s all-time high of Dh452.25 (24K) and Dh418.75 (22K). The small dip comes after five straight weeks of upward momentum, fueled by the US Federal Reserve’s first interest-rate cut of the year and strong global demand.
UAE Gold Price Trends
The recent peak in prices left many retail buyers hesitant, with some delaying purchases in the hope of more affordable levels. At current rates:
24K gold: Dh449.5 per gram
22K gold: Dh416 per gram
21K gold: Dh408 per gram
18K gold: Dh349.75 per gram
The drop is modest but welcome news for residents planning weddings, festive purchases, or long-term investments.
Meanwhile, in India, the 24K rate surged to ₹11,536 per gram and 22K to ₹10,575 per gram, reflecting global bullishness in the bullion market.
Why Gold Prices Are Rising Globally
Despite Thursday’s minor pullback, analysts point out that gold remains near historic highs. Several factors continue to support the metal’s strength:
Federal Reserve Rate Cuts: Last week’s policy easing lowered borrowing costs, boosting investor interest in safe-haven assets like gold.
Heavy Central Bank Buying: Global central banks, especially in emerging markets, have been adding to reserves at record levels.
ETF Demand: Gold-backed exchange-traded funds saw the strongest inflows in three years, with almost 400 tons purchased so far in 2025.
Geopolitical Moves: Reports suggest China may act as a custodian of foreign sovereign gold reserves, adding another layer of demand confidence.
Silver Rally: Alongside gold, silver has surged, making precious metals among the top-performing commodities this year.
These elements combine to keep gold’s long-term outlook bullish, even if short-term corrections occur.
What Analysts Say
Market watchers note that Thursday’s decline could be the start of a brief correction, but they don’t expect significant losses. Gold continues to trade close to $3,745 an ounce globally — less than $50 below the record set earlier this week.
“While UAE buyers are hoping for a bigger fall, fundamentals still favor strength. Any dip is likely to be short-lived, with prices resuming an upward path,” said one Dubai-based bullion trader.
Federal Reserve Chair Jerome Powell recently commented that both the job market and inflation face risks, but he gave no clear signal about further rate cuts in October. This uncertainty has also fueled gold’s appeal as a hedge against volatility.
Impact on UAE Buyers
For many UAE residents, gold is more than an investment — it is a cultural and traditional asset, especially for weddings and festivals. The Dh3 drop, though minor, has already renewed activity in Dubai’s Gold Souk and other retail hubs.
Shoppers are waiting to see whether prices ease further in the coming weeks. Jewelers, however, caution that the overall upward trajectory makes timing difficult. “If buyers wait too long, they might miss the chance to lock in slightly lower rates,” said a retailer in Deira.
Outlook
Gold’s performance in the coming weeks will hinge on global economic signals, particularly:
US Federal Reserve’s October policy stance.
Continued central bank purchases.
ETF inflows and investment demand.
Geopolitical tensions influencing safe-haven demand.
For now, the message is clear: gold remains strong, but smart buyers may find small windows of opportunity during price corrections.