Dubai’s gold market experienced significant volatility this week, with prices plummeting dramatically before staging a notable recovery in early Tuesday trading. The precious metal witnessed a steep decline of over Dh22 per gram on Monday, pushing global rates to a two-week low, primarily driven by profit-taking activities among investors.
According to the latest data from the Dubai Jewellery Group, 24K gold opened at Dh525.75 per gram on Tuesday morning, representing a recovery of Dh4.5 per gram from Monday’s closing price of Dh521.25 per gram. This rebound followed a substantial 24-hour loss of nearly Dh18 per gram, highlighting the market’s extreme volatility.
Other gold variants similarly showed positive movement in early Tuesday trading. The prices for 22K, 21K, 18K and 14K gold rose to Dh486.75, Dh466.75, Dh400.0 and Dh312.0 per gram respectively, indicating broad-based recovery across the precious metals market.
Internationally, spot gold was trading at $4,375.86 per ounce at 9:30 AM UAE time on Tuesday, registering a 1.1 percent increase. This recovery came after Monday’s session saw gold lose over 4.5 percent, hitting its lowest point in two weeks.
Market analysts remain optimistic about gold’s underlying strength. Ahmad Assiri, Research Strategist at Pepperstone, noted that despite the recent volatility, metals have demonstrated their bullish structure remains firmly intact. “Gold is retesting the $4,500 level as a consolidation zone, suggesting the market is leaning toward digesting gains,” Assiri commented.
The fundamental drivers supporting gold and silver demand remain unchanged, rooted in persistent geopolitical tensions and policy-related risks. Expectations for a softer US dollar and potential Federal Reserve easing later in the new year continue to enhance gold’s relative appeal. Additionally, underlying tensions in US-China relations regarding critical minerals continue to provide structural support for metals demand without attracting excessive political attention for now.