Gold price drops Dh5 in UAE: Shoppers see bigger declines in the coming days

Dubai: UAE gold shoppers saw a significant price drop on Thursday — with gold falling by Dh5, and further declines now looking likely in the days ahead.

In Dubai, the price for 24-carat gold dropped from Dh405 to Dh400, while 22K fell to Dh370.50. The 21K variety was down to Dh355.25 and 18K to Dh304.50. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait.)

Market analysts say the fall in local gold rates reflects a global slide in prices, largely triggered by a strengthening US dollar and a drop in global economic fears.

This comes after US President Donald Trump clarified that it was “highly unlikely” he would dismiss Federal Reserve Chair Jerome Powell — a move that had previously stirred market anxiety.

A stronger dollar tends to weaken gold, and with US rate cuts potentially delayed until September, there's less immediate support for gold prices. That means gold could get cheaper in the short term — especially in Dubai where prices mirror international trends.

“Gold prices have been range-bound recently but are now approaching key support levels,” said Vijay Valecha, Chief Investment Officer at Century Financial. “If global prices fall below the $3,320 mark, we could see a test of the $3,300 level — which would translate to even lower retail rates in the UAE.”

The current softness in gold prices is also due to easing tensions between the US and China, which reduced demand for gold as a safe haven. Meanwhile, equity markets have turned more optimistic, further pushing investors away from gold.

For UAE residents looking to buy gold jewellery or bars, this may be a good time to watch the market closely — especially with forecasts hinting that prices may remain soft into next week.