After experiencing a significant drop of over Dh50 in the past week, gold prices in Dubai have shown signs of stabilization as of Wednesday morning. The 24K gold price settled at Dh476 per gram, down from Dh479 on Tuesday. Other variants, including 22K, 21K, and 18K, also saw slight declines, standing at Dh440.75, Dh422.75, and Dh362.25 per gram, respectively. This follows a brief dip in prices on Tuesday afternoon, which later recovered. Globally, spot gold prices fell to $3,959 per ounce at 9:30 AM UAE time, while silver prices rose by 0.63% to $47.5 per ounce. Market analysts attribute the volatility to shifting investor sentiment, with many opting for equities over safe-haven assets like gold. Josh Gilbert, a Market Analyst at eToro, noted that the potential for a trade deal between major economies has reduced the demand for gold as a safe haven. He explained that strong inflows into ETFs, Federal Reserve interest rate cuts, and geopolitical tensions had driven gold prices up by 50% in 2025. However, recent data indicates a cooling momentum, with gold-backed ETFs experiencing significant outflows as investors lock in profits. Gilbert added that while lower interest rates, central bank purchases, and inflation hedging demand could support gold prices in the long term, the near-term outlook remains uncertain due to positive equity market drivers.