Dubai gold prices drop again, 24K now down Dh41 from April peak

Dubai: Gold prices in Dubai slipped again on Thursday morning, giving jewellery buyers and investors a lower entry point after a volatile April that saw rates climb to fresh highs before pulling back sharply in the final week. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

At 10.13 am, 24K gold stood at Dh547.25 per gram, down from Dh548.25 on Wednesday, while 22K gold fell to Dh506.75 from Dh507.75. The latest move takes 24K gold more than Dh40 below its April 17 peak of Dh588, while 22K is now nearly Dh38 lower than its high of Dh544.50 on the same day.

The decline is likely to be watched closely by UAE shoppers who had delayed purchases during the mid-April rally, when prices stayed above Dh580 for several sessions. The retreat does not make gold cheap by historical standards, but it does ease the cost for buyers looking at wedding jewellery, investment coins or smaller purchases after weeks of record pricing.

Dubai gold started April at Dh573 for 24K and Dh530.75 for 22K before moving through several rounds of gains. Prices climbed to Dh575 on April 10, crossed Dh582 on April 14 and reached Dh588 on April 17, marking the strongest point of the month.

The rally began to lose strength after April 20, when 24K stood at Dh580.50 and 22K at Dh537.50. Prices then eased to Dh569.25 on April 22, briefly rose again around April 24 and April 26, before dropping more visibly in the final days of the month.

By April 28, 24K had fallen to Dh551.75, while 22K stood at Dh510.75. The decline continued on April 29 and again on April 30, taking 24K to Dh547.25 and 22K to Dh506.75.

That means 24K gold has fallen Dh21.75 in just over a week from April 22, and Dh34.75 from April 19, when it stood at Dh582.25. For 22K buyers, the drop from Dh539 on April 19 to Dh506.75 on Thursday represents a decline of Dh32.25 per gram.

The pullback could improve demand at jewellery stores, especially from buyers who had been waiting for prices to move below recent highs. In Dubai, even a Dh10 to Dh20 per gram fall can make a meaningful difference for families buying larger pieces or shoppers purchasing ahead of weddings and travel.

A 20-gram 22K jewellery purchase would cost about Dh645 less before making charges compared with April 19 rates. Compared with the April 17 peak, the saving would be around Dh755 on the same quantity, excluding retailer charges and VAT.

The latest decline comes after international bullion stemmed a three-day fall following the US Federal Reserve’s decision to keep interest rates steady. Spot gold was steady around $4,540 after losing 3.4% over the previous three sessions.

The Federal Reserve’s decision was expected, but the meeting showed deeper division within the central bank. Four officials dissented against the decision, the first such split since 1992, objecting to language that suggested rate cuts could eventually resume.

Treasury yields rose after the decision, with two-year yields posting their biggest increase on a Fed decision day since 2022. Higher yields usually weigh on gold because bullion does not generate interest income.

Gold is heading for a second monthly decline in April, with the Iran war now in its third month and energy markets still under stress. Bullion has fallen about 13% since the war began in late February, even though central bank demand and reserve diversification continue to support the longer-term case for gold.

Brent crude is trading above $124 a barrel after Axios reported that US President Donald Trump is set to receive a briefing on new military options for Iran, raising the risk of further escalation in the region. Higher oil prices complicate the inflation picture and make the outlook for interest rates harder to read.

World Gold Council data showed central banks added to gold holdings at the fastest pace in more than a year during the first quarter, with lower prices encouraging fresh buying that offset sales by some institutions.

- With inputs from Bloomberg.