UAE gold prices ease from earlier record high as global rise cools on profit-taking

Dubai: Gold prices in the UAE slipped on Tuesday after hitting record levels earlier in the day. 22-karat gold was at Dh424.50 per gram, while 24-karat stood at Dh458.50.

Just a week ago, gold hit new highs in Dubai when 24-karat touched Dh452.25 and 22-karat Dh418.75 per gram. Prices have since gained more than Dh6 in seven days.

(Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait.) Meanwhile, the Indian gold rate for 24-karat gold dropped to ₹11,744 per gram, and the rate for 22-karat gold rose to ₹10,765 per gram by Tuesday evening. 

Shamlal Ahamed, MD–International Operations at Malabar Gold & Diamonds, noted how gold continues to deliver "record returns for consumers", with prices rising 37% in 2024, 36% in the past nine months, and 85% over the last 21 months.

“Gold has reached an unprecedented milestone by crossing $3,800 per ounce, marking an all-time record in the global markets. This development is particularly significant because it validates the confidence that investors, institutions, and households alike have consistently placed in gold as a hedge against uncertainty."

Globally, the metal set a new all-time high of $3,865 per ounce earlier Tuesday before easing toward $3,800. It has now gained for six straight weeks, driven by demand from investors seeking safe-haven assets amid global uncertainty.

Commodity strategist Ole Hansen of Saxo Bank said Tuesday’s pullback was expected: “Gold trades sharply lower after reaching another record high overnight. The nervously anticipated correction appears underway, triggered by end-of-month profit-taking.”

For UAE consumers, the latest price movements mean gold remains both a cultural staple and a financial safe haven, with analysts expecting continued resilience in the months ahead.

Ahamed further added that demand is no longer only from households:
“While consumer demand remains steady, what is noteworthy in this cycle is that institutional investors, sovereign wealth funds, and central banks have emerged as the largest buyers of gold. Their significant participation underscores gold’s unique position as an asset that transcends borders, currencies, and economic cycles.”

Looking ahead, Ahamed expects further price momentum: “Given these dynamics, I foresee gold advancing towards the $5,000 per ounce mark in the coming years. This outlook reinforces what our customers have always believed — that gold is not merely ornamental, but a strategic and enduring investment.”