Dubai Gold Prices Fall Below Dh500 for Second Consecutive Week

Gold prices in Dubai have continued their downward trend, trading below Dh500 for the second consecutive week. The precious metal fell by Dh3.25 per gram on Monday morning, with the 24K variant trading at Dh489.75 per gram.

This represents a decline of almost 25 percent from January's highs and comes as the global spot gold price was trading at $4,064.34 per ounce, down 0.31 percent. Silver prices also fell, down 0.39 percent to $58.35 per ounce.

Analysts believe that gold is likely to remain under pressure due to higher energy prices, which increase the likelihood of interest rates staying high for longer. According to Vijay Valecha, CIO of Century Financial, a break below $4,022 could trigger testing of the lows at $3,945, followed by $3,900.

Conversely, a decisive breakout and close above $4,160 would suggest increasing bullish momentum in gold. Silver has also remained range-bound over the past month between $55.60 and $63.25, with a break below its recent support at $57.14 potentially leading to testing of the range low at $55.60.