Dubai gold prices suddenly plunge Dh30 after Diwali

Dubai: In the UAE, gold prices suddenly plunged nearly Dh30 per gram by Tuesday evening, after hitting a new record just hours earlier - a sign that last week’s volatility is likely to continue this week.

In Dubai, 24-karat gold currently costs Dh495, dropping below the Dh500-mark after a long while, while the price of 22-karat reached Dh458 per gram.

Earlier in the day, gold price opened at record Dh525.25 per gram and 22-karat reached Dh486 - same as yesterday's prices. The surge follows a sharp global sell-off that earlier in the week had trimmed part of bullion’s recent rally.

In India, 24-karat also marginally (by ₹10) slipped to ₹13,058 per gram and 22-karat stood at ₹11,970 (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

Globally, gold price of gold tumbled more than 5 per cent in trading Tuesday on profit taking after recent record highs for the precious metal seen as a safe haven investment. Gold slid 5.2 percent to $4,130.40 an ounce, the biggest drop since the start of the Covid pandemic.

However, gold continues to find support despite signs of easing trade tensions and expectations of a resolution to the US government shutdown. Other factors at play include hopes for US interest-rate cuts and rising central bank and ETF inflows.

Spot gold recently moved above $4,200 per ounce.  Analysts at major banks such as HSBC now forecast the metal could hit $5,000 an ounce in 2026.

In the UAE and neighbouring Gulf states, the run-up in price is already changing behaviour. While Dubai remains a global trade hub, high rates are deterring some retail jewellery buying and shifting demand toward lighter pieces and alternate assets

In India, where gold often has both investment and cultural appeal, the higher import parity is now pushing shoppers to compare global offerings and adjust purchase timing.

Despite the rally, technical indicators suggest caution. Some momentum metrics indicate the run that started in August may have overextended. On the risk side, any sudden easing of geopolitical or macro-economic stress could trigger a pull-back.

For investors and consumers, gold is commanding fresh attention, and the price momentum has shifted into a higher gear.