Dubai gold falls Dh3.50 while global rally pushes prices near $5,200

Dubai: Gold prices in Dubai opened lower on Thursday morning, giving residents a brief respite after a volatile February that has kept jewellery buyers and investors on edge. At 8.30 am, the 24-karat rate stood at Dh624.75 per gram, down from Dh628.25 on Wednesday. The 22-karat variety slipped to Dh578.50 from Dh581.75 a day earlier. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

The Dh3.50 drop in 24K prices reflects mild local consolidation even as global bullion continues to trade near historic highs. Shoppers weighing purchases ahead of the weekend are closely tracking whether the pullback holds or proves temporary.

February has delivered wide intraday and multi-day swings. Prices began the month at Dh589.50 for 24K and Dh545.75 for 22K on February 1, before falling sharply to Dh564.25 and Dh522.50 on February 2. Rates quickly rebounded above Dh590 in the days that followed and moved past Dh600 by mid-month.

Momentum accelerated in the final week. After trading at Dh600.50 on February 18 and Dh601.75 on February 19, 24K gold climbed steadily, reaching Dh628.25 on February 25 before easing to Dh624.75 on February 26. The 22K rate followed a similar trajectory, rising from Dh556.25 on February 18 to Dh581.75 on February 25, then softening to Dh578.50.

Overall, the month reflects a strong upward bias despite periodic pullbacks, with current levels significantly higher than early-February lows.

Internationally, bullion has been edging higher as traders assess geopolitical tensions in the Middle East and renewed trade friction linked to US tariffs. Gold climbed toward $5,200 an ounce after gaining nearly 6% over the past six sessions. The metal is now up almost 20% this year, recovering above $5,000 an ounce after a brief two-day retreat from a record $5,595 in late January.

A buildup of US troops in the Middle East has kept markets cautious. Washington imposed sanctions on more than 30 entities supporting Iranian oil and weapons sales ahead of nuclear talks in Geneva. Fresh tariff moves have added another layer of uncertainty, with US Trade Representative Jamieson Greer stating that President Donald Trump will sign a directive raising the global tariff to 15% where appropriate. A broad 10% levy took effect earlier this week following a Supreme Court ruling that struck down reciprocal tariffs.

Investors have responded by shifting allocations toward bullion, reinforcing a broader move away from the US dollar and Treasuries. Concerns about potential government interference in Federal Reserve policy have also lent support to gold. In a farewell essay before his retirement, Atlanta Fed President Raphael Bostic wrote that he was concerned Americans have started to question the central bank’s independence.

Residents planning jewellery purchases are facing elevated price levels compared with the start of the year, despite Thursday’s dip. Long-term investors, meanwhile, are watching whether global prices hold above $5,000, a threshold that has quickly become a psychological anchor in 2026.

Short-term softness in Dubai rates may attract opportunistic buyers, but the broader direction remains tied to global risk sentiment. Any further escalation in geopolitical or trade tensions could push bullion higher again, limiting the window for lower local prices.

- With inputs from Bloomberg.