Dubai: Gold to now get much cheaper? What UAE buyers can expect after Diwali

Dubai: Gold buyers in the UAE may finally get some relief. After weeks of record-breaking highs, gold prices plunged by nearly Dh30 per gram on Tuesday, tracking a global sell-off that wiped out around 6% of value in a single day — the sharpest drop since 2013.

In Dubai, 24-karat gold fell below Dh500, trading at Dh495 per gram, while 22-karat slipped to Dh458. Earlier the same day, prices had opened at a record Dh525.25 for 24K and Dh486 for 22K — the same as Monday’s peak.

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

Globally, spot gold fell as much as 6.3% to $4,082 an ounce, while silver tumbled 8.7%, as markets reacted to improving sentiment in US-China trade relations and a stronger US dollar.

“Gold and silver face heavy selloff as trade tensions between the US and China ease,” said Daniela Hathorn, senior market analyst at Capital.com.

She explained that the rally had been fueled by “safe-haven demand” during months of geopolitical tension and falling interest rate expectations — but momentum “has now run out of steam.”

The correction, analysts say, was inevitable after gold hit a series of unsustainably high record levels in recent weeks.

According to Fawad Razaqzada of City Index, the drop should not be seen as the end of gold’s broader uptrend. “Markets rarely move in straight lines,” he said. “While corrections are natural, many investors who missed the rally may now step in to buy the dip.”

For UAE residents, the sharp decline could mark the beginning of a much-needed price correction, especially after months of near-record highs that pushed 24K gold past Dh520.

Analysts suggest prices may continue to soften in the coming days as traders take profits and global demand cools, giving buyers in the UAE a window to purchase gold at lower levels — though large swings could persist.

“Experience tells us that wild price swings after a major rally often signal a material pullback,” said Matt Maley of Miller Tabak. “It doesn’t necessarily mean the bull market is over, but volatility tends to rise sharply.”

The recent sell-off comes amid easing trade fears, a firm US dollar, and profit-taking after an overextended rally. But with inflation still high and the US Federal Reserve expected to cut rates further in 2026, analysts say long-term support for gold remains intact.

In the short term, UAE buyers could see prices dip further below Dh495, especially if global spot gold remains under pressure. But given strong long-term fundamentals, any major drop is likely to be temporary.

For now, gold shoppers in Dubai may finally have a reason to smile — and possibly to buy — after months of record-setting highs.