Dubai gold drops Dh40 from March peak. Is this the buying window?
Prices retreat from peak levels seen at the start of the month
Dubai: Dubai: Gold prices in Dubai edged higher on Wednesday morning, with the 24K rate at Dh601 per gram at 9.17am, up slightly from Dh600 a day earlier, while 22K climbed to Dh556.50 from Dh555.50, yet the broader trend shows prices have dropped Dh40 from this month’s peak on March 2, raising the question of whether this is the right window for jewellery buyers to step in. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)
Internationally, bullion continues to trade near the $5,000 mark, holding close to record levels even as momentum slows. Investors are weighing the US Federal Reserve’s interest rate outlook alongside rising inflation risks driven by elevated oil prices.
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Prices move in a tight band
Recent price action shows a clear shift from early-month highs to a more stable range. Gold opened March at elevated levels, with 24K touching Dh641 on March 2 and Dh636 on March 1, before easing gradually through the first half of the month. By March 10 and 11, prices had climbed above Dh628 and Dh623 respectively, marking one of the strongest phases this month.
That rally lost pace quickly, with prices slipping to Dh617.50 on March 12 and continuing to soften toward the Dh600 mark. Over the past week, gold has moved within a narrow band, fluctuating between Dh604 and Dh600, indicating a pause after earlier gains. The 22K segment has followed a similar path, moving from a peak of Dh593.50 at the start of the month to the current Dh556.50 range.
Global cues keep traders cautious
Gold’s direction remains closely tied to expectations around US monetary policy. The Federal Reserve is widely expected to hold rates steady, but markets are focused on signals around inflation and the path ahead for rate cuts.
Higher oil prices have added another layer of uncertainty, feeding concerns about persistent inflation and limiting the scope for aggressive easing. Rising borrowing costs typically weigh on non-yielding assets such as gold, keeping gains in check despite strong underlying demand.
Demand supported by risk outlook
Despite the recent pause, gold has gained roughly 16% so far this year, supported by continued demand for safe-haven assets. Investors are also factoring in the possibility of slower economic growth combined with elevated inflation, a backdrop that tends to support bullion over time.
- With inputs from Bloomberg.
