Gold price down Dh50 per gram, $500 per ounce in a week: Buy now in Dubai?

Dubai: Gold prices fell sharply this week after a fast rally, reversing course just days after touching record highs and forcing UAE buyers to rethink timing, budgets and risk.

For households that buy gold for weddings, long-term savings or wealth preservation, the pullback matters less as a headline and more as a reset in entry levels.

In Dubai, 24-karat gold dropped to Dh589.50 per gram from a peak of Dh666, wiping out Dh50–Dh75 per gram in days. Globally, spot prices slipped below $5,000 an ounce, 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.

For decisions concerning your savings and investments, that reduces pressure to buy immediately.

Dubai’s physical gold market reacts fast to global moves. Several analysts flagged that the sudden volatility in gold and silver markets triggered panic selling, while adding that this behaviour was not confined to the local market but spread globally.

Many sellers were locking in gains rather than exiting out of financial stress. For buyers, this behaviour often signals a market moving from excitement to reassessment. Such shifts tend to favour planned purchases over impulse buying.

The current pullback doesn’t answer whether prices will rise or fall next. It does change how risk looks.

For buyers planning jewellery purchases:

For long-term holders:

For those holding gold already:

Despite the correction, analysts also reiterated that the broader case for gold remains intact, flagging how steady central bank buying and strong industrial demand for silver continue to support prices over the long term.

Globally, demand has been fuelled by geopolitical uncertainty and questions around monetary policy stability—factors that traditionally push investors towards safe-haven assets.

For UAE residents, gold remains both a cultural asset and a financial one. This week’s move doesn’t change that role. It highlights the cost of emotional decision-making—and the advantage of buying with a plan rather than a headline in mind.