Dubai gold prices fall below Dh600 as global rates slip under $5,000
India gold rates tumble alongside global correction after last week’s surge
Dubai: Gold prices in Dubai opened lower on Tuesday, slipping below the key Dh600 level for 24K as international rates corrected from last week’s sharp rally.
The price of 24-carat gold stood at Dh598.50 per gram, down from Dh602.00, yesterday. Meanwhile, 22-carat gold dropped to Dh554.25, compared to Dh557.50 a day earlier.
The decline marks a noticeable cooling after bullion surged in recent sessions, briefly riding strong global momentum. For UAE buyers, particularly those planning jewellery purchases or remittances, the move back below Dh600 could be a motivator to buy ahead of Eid Al Fitr.
Retail gold sales usually soften during the first half of Ramadan. However, demand rebounds before Eid, especially ahead of Eid al-Fitr, when gifting gold jewellery is common across South Asian and Arab communities.
The fall mirrors international trends, where bullion slipped below the closely watched $5,000 mark.
India gold rates fall sharply
In India, gold prices also recorded a significant pullback in morning trade.
24-carat gold was priced at ₹154,910 per 10 grams, down from ₹156,440 yesterday
22-carat gold stood at ₹142,000 per 10 grams, compared to ₹143,400 previously
The drop in Indian markets reflects both the global correction and currency movements. For buyers in India, the decline offers mild relief after prices had scaled record levels last week.
Healthy correction after explosive rally
Globally, gold was trading at $4,950.02, down $91.78, or 1.82 per cent.
Market analysts describe the retreat as a technical correction rather than a reversal in sentiment.
“Today’s retreat in gold prices below the $5,000 mark represents a classic correctional reaction following Friday’s explosive rally,” said Mohanad Yakout, Senior Market Analyst at Scope Markets.
He explained that last week’s surge was driven by softer-than-expected US inflation data, which revived expectations of Federal Reserve rate cuts. However, Tuesday’s pullback reflects consolidation rather than panic selling.
“With major markets in the US and China closed for holidays, a thin-liquidity environment has allowed a marginally stronger US dollar to exert outsized pressure on the metal.
This ‘healthy breather’ suggests that investors are strategically locking in profits at psychological resistance levels rather than fleeing the asset,” Yakout added.
In market terms, gold remains sensitive to three key drivers: US rate-cut expectations, dollar strength, and broader risk sentiment. While the short-term momentum has cooled, the underlying narrative of lower interest rates continues to offer structural support to bullion.
For UAE shoppers and investors alike, the key question now is: is this dip is a temporary consolidation? Or is it the start of a deeper pullback, especially ahead of the Holy Month and Eid-Al-Fitr.
