Dubai gold prices slip as global forecast warns of 20% plunge: Postpone buying?

Dubai: After months of hovering near record highs, gold prices are dipping again—raising a key question for UAE shoppers: Is this the start of a long-awaited correction?

As of today, 24-karat gold dropped to Dh406.00 per gram in the UAE, while 22-karat was at Dh376, 21-karat at Dh360.50, and 18-karat at Dh309.00. (Check live Dubai gold rates here.)

Just a few weeks ago, 22K prices seemed poised to break past Dh400, continuing a surge that began in late 2024, when gold shot past Dh300 for the first time. But today, prices are more or less stable, with 22K at Dh378.50 and 24K at Dh408.75—down from recent peaks.

The dip in prices follows comments from the US Federal Reserve, which signalled caution on future interest rate cuts due to sticky inflation. For gold, which doesn’t earn interest, higher interest rates typically dull its shine. That’s exactly what markets seem to be reacting to.

At the same time, fears of geopolitical tension—especially involving Iran—are keeping gold somewhat supported. But for now, those haven’t outweighed macroeconomic pressures.

Spot gold is now trading near $3,350 an ounce, down 0.5% today, while silver and platinum have shown mixed moves. Platinum even hit a decade-high before easing slightly.

In a surprising turn, Citi analysts now forecast gold could drop over 20% in the second half of 2025, continuing into early 2026. Their projections suggest gold could slip below $3,000/oz as investor interest starts to fade.

If that happens, UAE gold rates could slide back under Dh300—a level not seen in more than a year.

“This is the first time a major bank is calling gold overpriced,” said a Dubai-based retailer. “Everyone was expecting $3,700–$3,800 by end-2025, not a fall.”

For UAE residents who’ve been holding off on jewellery purchases, this may finally be the window to watch. If gold prices do correct further in the weeks or months ahead, it could spark a rush of shoppers, especially during the next major holiday sales season.

Retailers expect strong demand if prices dip closer to Dh300, which could usher in a “golden age” for consumers—especially for wedding jewellery and festive gifting.

Gold is still trading high—but global signals hint at a possible turning point. If you’re a UAE gold buyer, stay alert: a deeper dip could be on the horizon, and timing your next purchase could make all the difference.