UAE gold prices fall further as global rates drop again

Dubai: Gold prices fell further below the Dh500 mark for the purest 24-karat variant, following a 1% decline in global prices and signaling the possibility of more reductions ahead.

In Dubai, 24-karat gold traded at Dh491.50 per gram on Monday morning, while 22-karat stood at Dh455 per gram. This marks the second consecutive day that prices have dropped to these levels after the post-Diwali plunge of Dh30 per gram.

Retailers said demand remains steady for now as buyers adjust to the new price levels following the brief correction. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

Global market decline

On global exchanges, gold fell 1.3% to $4,060 per ounce after the weekend. The metal’s slide followed its first weekly decline since mid-August, driven by optimism surrounding progress on a potential US-China trade deal that reduced demand for safe-haven assets.

Both countries signaled they were nearing completion of a broad agreement as US President Donald Trump visited Asia for a series of diplomatic meetings. The anticipated deal could ease some of the economic and geopolitical risks that had previously supported gold prices.

Record rally loses steam

Gold’s recent rally, which began in mid-August and pushed prices to a record high just above $4,380 an ounce last Monday, has reversed amid concerns that the market had become overbought. Prices steadied on Friday after a near 6% drop over the previous two sessions.

Investors are now reassessing whether the surge to record levels overshot fundamentals, even as the metal remains around 55% higher for the year. Continued expectations that the US Federal Reserve may implement at least one quarter-point interest rate cut before year-end continue to lend some support.

UAE prices to drop further?

In the UAE, the latest correction offers a welcome break for shoppers after months of record highs. Retailers expect renewed consumer interest if 24-karat gold stays below Dh500 per gram.

The easing in prices could encourage pent-up demand and drive stronger sales in the coming weeks, especially among buyers waiting for a sustained dip before returning to the market.