UAE gold prices fell further on Monday as global rates dropped, pushing 24-karat gold below the Dh500 mark. In Dubai, 24-karat gold traded at Dh491.50 per gram, while 22-karat gold stood at Dh455 per gram. This marks the second consecutive day of decline after a post-Diwali drop of Dh30 per gram.
Retailers report that demand remains steady despite the recent drop in gold prices. Many buyers are taking time to adjust to the new price levels following the sharp post-Diwali correction. Experts explain that the recent decline reflects broader global market trends, including shifts in investor sentiment and ongoing trade developments.
On international exchanges, gold fell 1.3% to $4,060 per ounce after the weekend. This decline followed the first weekly drop since mid-August. Optimism over a potential US-China trade deal drove investors to move funds from safe-haven assets like gold.
Both countries signaled progress toward finalizing a broad trade agreement. Additionally, US President Donald Trump’s diplomatic visit to Asia eased economic concerns. As a result, investors shifted investments away from gold.
Experts explain that the global market’s positive sentiment now reflects in UAE gold prices. They expect further short-term volatility. Moreover, buyers and retailers should monitor international trade developments closely.
Despite lower prices, retailers note that consumer interest in gold remains strong. Many buyers invest in jewellery and bullion as long-term hedges. Meanwhile, jewelers adjust supply and pricing strategies to maintain market stability.
In the UAE, gold trading closely follows global trends. Significant changes in US-China trade relations, inflation expectations, or geopolitical tensions directly influence local prices. Experts also point out that seasonal factors, including festivals and weddings, may affect short-term demand.
In conclusion, UAE gold prices respond to global optimism and easing economic risks. Retailers and investors must stay informed of international developments to make strategic decisions. Overall, the market remains cautious but stable, with further movements expected in line with global trends.
