Gold prices steady in Dubai as global rally cools after steep sell-off

Dubai: Gold prices opened the week steady in Dubai after a turbulent stretch that saw a sharp global sell-off wipe out part of bullion’s recent rally. On Monday, 24-karat gold traded at Dh512.25 per gram, while 22-karat stood at Dh474.25.

In India, the 24-karat rate hovered at ₹13,085 per gram and 22-karat at ₹11,995, showing limited movement despite volatility in global markets.

(Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

The stability follows a rough end to last week, when gold posted a 1.7% drop, its steepest daily fall since May, amid profit-taking and a broader pullback across precious metals. Silver also tumbled, falling more than 4% on Friday before trimming losses early Monday.

Analysts say the market remains divided on whether the recent pullback signals consolidation or the start of a deeper correction. Much depends on the tone of upcoming talks between the US and China, after President Donald Trump last week hinted at a possible compromise to ease trade tensions. Signs of progress could temper demand for traditional safe-haven assets such as gold and silver.

At the same time, lingering concerns around the health of some US regional banks have kept investors cautious. Reports of loan-related troubles at Zions Bancorp and Western Alliance Bancorp have revived fears of credit stress in parts of the financial system, providing a degree of support for bullion.

Gold has been one of this year’s standout assets, climbing more than 60% since January. The gains have been driven by strong central-bank purchases, inflows into exchange-traded funds, and a surge in safe-haven buying amid geopolitical strains, rising government debt and uncertainty over the Federal Reserve’s policy path.

Silver has outperformed even further, gaining nearly 80% this year, buoyed by both industrial and investment demand. However, the recent easing in London stockpile pressures has narrowed price gaps between trading hubs. Over the past fortnight, more than 20 million ounces of silver were withdrawn from New York’s Comex warehouses, with much of it likely flowing to London, helping ease shortages there.

Technical indicators suggest that the metals rally that began in August may be overheating. The relative strength index (RSI) for gold remains elevated, hinting at limited upside unless new catalysts emerge.

For now, investors are watching how policy signals from Washington and Beijing shape the next phase. A breakthrough in trade negotiations or signs of stronger global growth could trigger further selling in bullion, while renewed political or financial stress may quickly send buyers back to gold.