Dubai gold price plunges Dh35 from record high after 5% drop worldwide

Dubai: Dubai gold prices fell sharply minutes after hitting fresh records, mirroring a sudden downturn in global markets. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

In the UAE, rates dropped from Dh665 to Dh629 per gram, a Dh35 slide that tracked a rapid pullback in international prices. It closed at Dh639 yesterday.

Global gold tumbled more than 5% after reaching $5,000 an ounce for the first time, as traders reassessed the rally that had pushed the metal to repeated all-time highs.

Gold later touched $5,111.07 an ounce before selling pressure accelerated. The retreat spread across metals markets. Silver plunged more than 8%. Copper and nickel also moved lower.

“The parabolic rally had to come to an end,” Kathleen Brooks, research director at XTB, told AFP, as commodity prices had “gone up too far, too quickly”.

The rally had pushed prices too far, too fast, prompting traders to lock in gains as volatility returned to markets.

Gold’s surge had been driven by global uncertainty and investor demand for safe-haven assets, fuelled by concerns over US trade policy, government spending, and inflation.

“It vaulted over the psychologically important 5,000 mark on a glittering streak, heading sharply higher as trade tensions emanating from the US unnerved investors,” said Susannah Streeter, chief investment strategist at Wealth Club.

A weakening US dollar added to the momentum earlier in the week, with the currency sliding against the yen and other majors, boosting the appeal of dollar-priced commodities.

Silver had also been riding the wave, striking a record above $110 an ounce on Monday before reversing course alongside gold.

For Dubai buyers, the sudden swing underlined how quickly global price shocks now feed into local bullion markets.

- With inputs from Agencies