Gold prices fall by over $100 - how will Dubai Gold Rate react?

Dubai: Gold prices have taken a steep fall after news of an interim deal on tariffs was announced by the US and China – as of now, it’s down by $102 to $3,225 an ounce.

Such a steep single day has rarely been seen in 2025, where the norm had been for gold to keep pushing ever higher, through $3,200 all the way up to $3,500.

The Dubai Gold Rate is currently at Dh359.25 for a gram of 22K and the shopper sentiment is that there could be much further drop from these levels.

 “There is a massive Dh12 a gram difference between Dubai gold rate now and what it was last evening,” said Anil Dhanak, Managing Director of Kanz Jewels. “But I won’t say that UAE shoppers will rush back to buy because there is such a drop. They will still wait for the right occasions and spend to their budgets.

“When it comes to tourist shoppers, they only look at the three things: price difference with their home country; the purity of the gold that’s available here; and the sheer variety of designs. They get to choose from Italian, Turkish, Korean and more rather than just one or two choices in their home market.”

Commodities analysts are looking to see whether gold's decline will continue. The impression is that the asset had feasted on tariff and dollar decline worries for the better part of April and the first 10 days of May.

Now, there seems to be a realistic chance for gold to find 'right levels'.

But can the drops be sustained? This year, there have been multiple occasions when gold's fallen by $50-$75 and raised the hopes of shoppers. Only for those hopes to be dashed by overnight increases/

Which way will gold be heading in the next few hours?

According to Aditya Singh, Head of International Jewellery Business at Titan Company, "While today's decline in gold prices is notable, it is not the most significant in recent months. For instance, on April 23, gold experienced a substantial drop of $125.30, or 3.7%, settling at $3,294.10 per ounce, marking the largest one-day fall in nearly four years.

"In contrast, the current decrease is more moderate. Such fluctuations are typical in the gold market, often influenced by macroeconomic factors like US-China trade developments and shifts in investor sentiment.

"Gold continues to be valued for its long-term stability and cultural significance. In such times, its customers look at maximising investment by upgrading old gold jewellery, giving them more value-for-money."

"We expect an increase of 25% in exchange-led sales," said Singh. "We may be running an attractive offer for the exchange of old gold jewellery."