Dubai gold prices plunge over Dh30 again, now down Dh100 from peak

Dubai: Dubai gold prices are down sharply again, plunging by over Dh30 per gram for a second time in a week, totalling weekly declines to over Dh100 gram from its peak, as heavy global gold sell-off continued.

In the UAE, prices have been in free fall since hitting fresh highs late last week, with 24-karat dropping from its peak of Dh665 to Dh565 per gram on Monday. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

Global gold tumbled more than 4% after reaching $4,692.52 an ounce, as traders reassessed the rally that had pushed the metal to repeated all-time highs. Gold reached a record high of $5,594.82 last Thursday.

“The parabolic rally had to come to an end,” Kathleen Brooks, research director at XTB, told AFP, as commodity prices had “gone up too far, too quickly”.

In Dubai, 24-karat gold dropped to Dh589.50 per gram over the weekend, wiping out Dh50–Dh75 per gram in days. Globally, spot prices slipped below $5,000 an ounce for the first time last week, then down more than 8 per cent from highs above $5,500.

For many UAE residents, January's rally priced gold out of reach. Prices rose from Dh519.25 per gram at the start of the month to record levels within weeks. The speed of the move left little room for planned purchases, especially for families budgeting for jewellery-linked expenses.

The pullback has changed that dynamic. Even after the fall, gold remains around Dh70 per gram higher than at the start of January, showing how elevated prices still are. The difference is that buyers now face a cooling market rather than a rising one.

The rally had pushed prices too far, too fast, prompting traders to lock in gains as volatility returned to markets.

Gold’s surge had been driven by global uncertainty and investor demand for safe-haven assets, fuelled by concerns over US trade policy, government spending, and inflation.

“It vaulted over the psychologically important 5,000 mark on a glittering streak, heading sharply higher as trade tensions emanating from the US unnerved investors,” said Susannah Streeter, chief investment strategist at Wealth Club.

A weakening US dollar added to the momentum earlier in the week, with the currency sliding against the yen and other majors, boosting the appeal of dollar-priced commodities.

Silver had also been riding the wave, striking a record above $110 an ounce on Monday before reversing course alongside gold.

For Dubai buyers, the sudden swing underlined how quickly global price shocks now feed into local bullion markets.

- With inputs from Agencies