Dubai gold plunges Dh30, Eid shoppers save nearly Dh100 a gram this month

Dubai: Gold prices in Dubai have dropped by over Dh30 by Thursday evening, and more than Dh80 from their March highs, opening a window for last-minute Eid shoppers looking to buy jewellery at relatively lower rates after weeks of elevated pricing. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

By 7 pm on Thursday, 24-karat gold was priced at Dh554.25, down more than Dh30 from Dh588 a day earlier and Dh87 below the Dh641 level seen on March 2. The 22-karat variant followed a similar trend, standing at Dh513.25 compared to Dh544.50 on Wednesday and Dh80.25 below its Dh593.50 peak earlier this month.

The pullback comes just ahead of Eid, a period when jewellery demand typically surges across the UAE.

Prices began the month on a strong footing, holding above Dh630 for 24-karat gold and close to Dh590 for 22-karat. Early March saw a sharp spike, with rates touching their highest levels on March 2 before starting a gradual decline.

Momentum remained elevated through the first half of the month, with 24-karat gold still trading above Dh620 as late as March 11. The trend shifted more decisively after mid-March, with prices slipping below Dh610 and then moving closer to Dh600.

The past few sessions have seen a faster correction. Rates dropped to Dh600 on March 17 and have continued to ease since, bringing prices down to current levels in the mid-Dh580 range. The overall move reflects a drop of more than Dh50 from the month’s peak, offering a noticeable difference for buyers making larger purchases.

International markets have played a key role in shaping local prices. Gold found some support on Thursday after a six-day losing streak, with dip-buyers stepping in following a near 4% slide.

Even with the recovery, broader pressures remain. The US Federal Reserve has held interest rates steady and signalled limited scope for cuts this year, keeping yields elevated and reducing gold’s appeal compared to interest-bearing assets.

Rising oil prices linked to the ongoing conflict in the Middle East are also feeding inflation concerns, which in turn support a stronger dollar. A firmer dollar tends to weigh on commodities priced in the currency, including gold.

The timing of the price drop is drawing attention from consumers preparing for Eid purchases, particularly those planning to buy wedding jewellery or gift items.

While gold remains higher on a year-to-date basis, recent declines have eased some of the pressure on buyers who had delayed purchases during the earlier rally. The current levels offer a more accessible entry point compared to the start of the month, even though volatility in global markets suggests prices could continue to fluctuate.

With Eid just around the corner, shoppers are now weighing whether to lock in rates or wait for further dips, with the latest correction providing a timely opportunity in an otherwise uncertain market.

- With inputs from Bloomberg.