Dubai gold prices have eased over the past six days, giving shoppers a welcome break. The 24K gold rate dropped to Dh596.75 per gram on Tuesday morning, down from Dh602.00 at Monday’s market close. Consequently, buyers planning weddings or special events can take advantage of the lower rates.
In addition, 22K, 21K, 18K, and 14K gold prices also fell in Dubai. They now trade at Dh552.50, Dh529.75, Dh454.25, and Dh354.25 per gram, respectively. This correction has sparked renewed interest among jewellery shoppers in the UAE. Many are also adding physical and digital gold to their investment portfolios, viewing the dip as a buying opportunity.
Spot gold was trading at $4,941.18 per ounce, down one percent at 9.10am UAE time. Analysts say the drop reflects a combination of dollar strength and thin trading across Asian markets.
Vijay Valecha, chief investment officer at Century Financial, explained that recent US inflation data influenced price movements. Headline CPI eased mainly due to energy costs, while core inflation showed only modest relief. Consequently, markets adjusted expectations for future rate cuts.
Furthermore, Valecha noted that core goods inflation remained firm, while non-housing services rose on seasonal repricing. As a result, traders now expect about 62 basis points of interest rate cuts by year-end, or roughly two to three quarter-point moves. A June reduction is once again possible.
During periods of equity market stress, gold can sometimes fall alongside stocks. Investors sell liquid assets to cover losses elsewhere. However, experts say this temporary dip could create long-term buying opportunities.
Overall, Dubai gold prices have fallen nearly Dh14 per gram in six days. This trend benefits both investors and everyday buyers. Shoppers and collectors are now more likely to increase purchases, while the market remains closely tied to global currency and inflation trends.
The easing of Dubai gold prices highlights both short-term market volatility and strategic buying potential. Investors and jewellery shoppers are advised to monitor changes closely for optimal entry points.
