Dubai gold price eases after Monday gain, market volatility continues

Dubai: Gold prices in Dubai eased on Tuesday morning, giving back part of the previous session’s gains as global bullion markets turned cautious again. At 8.15 am, the 24-karat rate stood at Dh606.75 a gram, down from Dh610.50 on Monday, while 22-karat gold slipped to Dh562 from Dh565.25. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

The pullback mirrors softer global prices after investors booked profits in a market that remains volatile following January’s sharp swings. While bullion has retreated from recent highs, sentiment remains sensitive to upcoming US economic data and signals on interest rate policy.

Sharp swings through January and early February

Local prices over the past month highlight how unsettled the market has been. Gold opened January near the Dh555 level for 24-karat before climbing steadily through the month. By January 28, prices had surged to Dh639.25, marking one of the strongest rallies in recent years. That spike was followed by a sharp correction, with rates falling back below Dh600 in early February.

February trading has remained choppy. Prices dipped to Dh564.25 on February 2, rebounded toward Dh610 by February 9, and then eased again on Tuesday. The pattern reflects rapid shifts in global sentiment, with buyers stepping in on dips but struggling to sustain momentum at higher levels.

Gold retreats after two-day gain

Globally, gold fell after a two-day advance, with investors trimming positions in a market still searching for direction after January’s historic selloff. Spot gold dropped as much as 1.4% before paring losses to trade slightly above $5,000 an ounce. Prices are about 10% below the all-time peak reached on January 29, though they remain firmly higher for the year.

Precious metals had plunged late last month after a speculative surge pushed markets into overheated territory. Many of the longer-term drivers, however, remain intact. Heightened geopolitical risks, sustained central bank buying, and investor caution toward sovereign bonds and currencies continue to support bullion demand.

Major financial institutions, including Deutsche Bank AG and Goldman Sachs Group Inc. have said gold is likely to recover over time, citing these structural factors. Official sector demand has also stayed resilient, with the People's Bank of China extending its gold purchases for a 15th straight month in January.

US data and Fed outlook

Attention is now turning to US economic data due later this week for clues on the policy path of the Federal Reserve. Markets are assessing the outlook after President Donald Trump nominated Kevin Warsh as the next head of the central bank. The January jobs report is expected to indicate stabilisation in the labour market, while inflation data due on Friday could shape rate expectations.

Spot gold was last down 0.7% at $5,024.74 an ounce in Singapore. Silver slid 2.4% to $81.43, while platinum and palladium also traded lower.

- With inputs from Bloomberg.