Gold prices in Dubai opened lower on Thursday after losing most of Wednesday’s gains. The drop came as market sentiment shifted following a ceasefire announcement, prompting investors to react quickly to easing geopolitical tensions across the region.
Prices fell nearly Dh10 per gram within 24 hours. Traders had seen a strong rally just a day earlier, when gold surged about Dh12 per gram after the ceasefire news emerged. However, that momentum did not last.
At market open on Thursday, 24K gold traded at Dh569 per gram, down from Dh578.75 recorded the previous morning. The rapid reversal reflected changing investor sentiment, with many traders adjusting their positions accordingly.
Other gold categories followed the same downward trend. The 22K variant traded at Dh526.75 per gram, 21K gold reached Dh505.00 per gram, 18K gold stood at Dh433.00 per gram, and 14K gold recorded Dh337.75 per gram.
Globally, gold prices also moved lower. Spot gold traded at $4,702.65 per ounce during early UAE trading hours, representing a decline of 0.65 percent. Meanwhile, silver prices dropped 1.78 percent to $73.96 per ounce.
Market participants are now focusing on upcoming geopolitical developments, including continued ceasefire negotiations in Islamabad on Saturday. Investors anticipate further clarity from these discussions, and market volatility may remain elevated.
Analysts noted that easing tensions reduced immediate supply concerns. In particular, fears of disruptions in the Strait of Hormuz—a key route handling a significant portion of global oil shipments—have declined, weakening the risk premium on gold.
Experts also emphasized broader macroeconomic influences. Gold continues to respond strongly to global political signals. Despite the recent drop, technical indicators still suggest an upward trend, with prices maintaining a pattern of higher lows in recent weeks.
Silver has shown notable resilience during the same period. Analysts observed stronger momentum in silver compared to gold, reflecting a shift toward riskier assets in the current environment.
Gold prices in Dubai remain highly sensitive to rapid geopolitical changes. Investors continue to monitor both technical signals and political developments. As negotiations progress, markets may experience further fluctuations in the coming days.
