Gold price plunges further: Is this the time to buy or postpone plans?

Dubai: Gold prices have taken a sharp dip, with Dubai’s 22K gold rate dropping by Dh7 overnight to Dh370.25 per gram — the lowest local rate since June 9, when it briefly hit Dh369.75. Just days ago, on June 13, shoppers were paying Dh383.50 a gram, making this a Dh13.25 fall in less than two weeks.

Globally, gold is also in retreat. Prices in international markets fell by a steep $80 an ounce, with spot gold now trading around $3,299.92 — down nearly 2.4% in early Tuesday trade. Gold futures for August delivery also dropped significantly, falling to $3,322.40 per ounce, about 3.8% lower than the record high set on June 13. (Check live Dubai gold rates here.)

The price drop comes in response to a ceasefire deal between Israel and Iran, which has cooled tensions in the Middle East — a major driver of gold’s recent rally. US President Donald Trump announced the ceasefire on his social media platform, following back-to-back retaliatory strikes between the two nations. With safe-haven demand easing, traders are pulling back from gold, a traditional security blanket during times of geopolitical stress.

“Gold retreated as haven demand ebbed after Trump said Israel and Iran had agreed to a ceasefire,” noted analysts at Saxo Bank. The truce appears shaky, with both sides accused of minor violations, but markets are still pricing in lower geopolitical risk for now.

Analysts believe that if geopolitical risks continue to ease, gold prices could soften more in the short term. Investors are also eyeing Federal Reserve Chair Jerome Powell’s upcoming testimony, hoping for clues on US interest rates. A move toward monetary easing could offer fresh support to gold, but for now, the dominant trend is downward.

For UAE gold buyers, this could be a window of opportunity. Whether you're shopping for jewellery or investing in bars and coins, a Dh13 drop per gram in just over a week could translate into hundreds of dirhams in savings on larger purchases.

But if you’re planning to buy, timing is key — especially with gold’s history of bouncing back quickly. Keep an eye on updates from the Fed and any fresh developments in the Middle East that could swing prices again.