Dubai Gold Prices Plummet Below Dh500 per Gram Amid Global Economic Uncertainty

Gold prices in Dubai have dropped below Dh500 per gram for 22K gold as the precious metal traded under $4,500 an ounce over the weekend. This development is expected to benefit UAE gold jewelry shoppers ahead of key Indian festivals like Diwali and Navratri.

The 24K and 22K gold prices closed at Dh536.75 and Dh497 per gram, respectively, falling by Dh23.25 and Dh21.5 per gram since their peak on August 25. Other variants such as 21K, 18K, and 14K also slipped to Dh476.75, Dh408.5, and Dh318.75 per gram, respectively.

Rania Gule, senior market analyst for Mena at xs.com, views the current pullback below $4,600 as a natural corrective move driven by profit-taking after a strong upward rally. She notes that elevated inflation and uncertainty over economic growth are making the US Federal Reserve's task increasingly complicated.

Gule believes that any more hawkish-than-expected signal from the Fed could provide temporary support to the dollar and Treasury yields, thereby increasing pressure on gold. Conversely, a dovish tone could revive demand for the precious metal.