Gold steady as UAE buyers watch for dips and long-term value gains

Dubai: Gold prices held steady this week, shrugging off earlier declines as global markets reacted to signs of progress in US-China trade talks.

While investors typically pull back from safe-haven assets like gold during times of geopolitical calm, bullion remained resilient, trading near $3,330 per ounce globally.

The first round of discussions between the US and China in London led to a tentative agreement aimed at easing trade tensions — a move that would usually signal weaker demand for gold. Yet, the lack of a sharp pullback suggests that investors are still cautious, awaiting further clarity on global economic direction.

In the UAE, gold retail prices continue to reflect this underlying uncertainty. As of Tuesday evening, 24K gold traded slightly above Dh400 per gram, while 22K stood at around Dh372, according to Dubai gold retailers. (Check live Dubai gold rates here.)

Despite short-term fluctuations, market analysts remain bullish on gold’s medium- to long-term prospects.

This upward trajectory is underpinned by key macroeconomic drivers: growing concerns over inflation, rising global debt, and robust demand from central banks — particularly from emerging markets like China, which continues to diversify away from US-denominated assets.

Retailers in Dubai report steady footfall from local buyers and tourists alike. Some consumers are taking advantage of the current levels, while others are waiting to see if gold dips closer to the Dh360–Dh365 per gram range — a level seen as an ideal entry point for long-term investors.

Gold’s recent resilience is part of a broader global trend. According to a new report from the European Central Bank, gold has now overtaken the euro as the second-largest asset in global central bank reserves, accounting for 20% of holdings. The rise — fueled by central bank purchases and investor interest — reflects gold’s growing appeal in a world where economic stability is no longer guaranteed.

Notably, the freezing of Russia’s foreign exchange reserves in the West after the Ukraine conflict prompted many nations to rethink their exposure to Western financial systems. In response, central banks have ramped up gold purchases to hedge against potential sanctions and inflation.

For UAE-based gold buyers, current prices remain attractive, especially for those viewing gold as a long-term store of value. While a minor correction to the Dh360–Dh365 level is possible, analysts caution that a steep drop is unlikely given the sustained global interest in the metal.

Market watchers are keeping a close eye on the upcoming US Treasury auction, with weak demand there likely to support further upside in gold, as investors seek safety from volatile bond markets.

As one Dubai gold retailer put it: “We’ve seen consistent buying at Dh370–Dh375. If prices do soften briefly, we expect even more interest.”

Gold may not be soaring today, but its foundation is solid — and for UAE buyers, this could be the calm before the next rally. Whether you're investing or simply shopping for the right time to buy, the next few weeks may offer a strategic window to act.