UAE: Gold drops for second day – but will it fall further?

Dubai: Gold prices have taken a breather—for the second day in a row. The yellow metal dipped again on Thursday, trading just below $3,340 an ounce, down 0.7% in early London hours. That’s on top of a 2% slide the day before, leaving many wondering: has gold finally peaked, or is this just a healthy pullback before another surge?

For gold enthusiasts in the UAE—especially those who bought during recent highs or are eyeing a dip to jump in—this movement feels like the market playing mind games. But here’s what’s really going on.

Why is gold cooling off?

A stronger US dollar is partly to blame. After the Federal Reserve opted to hold interest rates steady, Fed Chair Jerome Powell struck a more cautious tone on future cuts. Translation? The US may not be in a hurry to slash rates just yet.

That sent the dollar climbing, making gold more expensive for buyers using other currencies—like the UAE dirham, which is pegged to the greenback. Add to that a sense of easing panic over global trade tensions, and you’ve got a recipe for short-term pressure on gold.

Is this the end of gold’s rally?

Probably not. In fact, most analysts still see gold as being in a long-term uptrend.

Over the past year, gold has surged more than 25%, driven by global uncertainty, central bank buying (especially in Asia), and strong demand from investors seeking a safe haven. According to traders, the current dip might just be a breather—not a full stop.

Key levels to watch?

· Support (floor) sits around the $3,200 mark—a level that’s been both a past high and a recent low.

· Resistance (ceiling) is around $3,500—a psychologically important level where many traders tend to take profit.

If gold slips further, many experts suggest that could be a buying opportunity, not a signal to panic. “This market grinds higher in the long run,” said one analyst. “Short-term dips are where value buyers come in.”

What should UAE buyers do now?

If you’re shopping for gold jewellery or coins, lower global prices could soon reflect in local rates. That’s a win. If you’re investing, think longer term. History shows gold tends to perform well when uncertainty is high—even if prices take a few steps back in the short run.

Bottom line: The dip may continue—but for now, gold’s long-term shine still looks intact.