Gold markets in Dubai and worldwide experienced a downward adjustment on Thursday morning as investors capitalized on recent gains, triggering a sell-off that pushed prices lower. The precious metal, which had reached unprecedented levels in previous sessions, faced pressure from reduced safe-haven demand amid easing geopolitical concerns and profit-taking activities.
According to the latest data from the Dubai Jewellery Group, 24K gold traded at Dh553.0 per gram, representing a decline of nearly Dh2 from previous levels. Other variants followed similar patterns, with 22K gold slipping to Dh512.25 per gram, while 21K, 18K and 14K varieties traded at Dh491, Dh421 and Dh328.25 per gram respectively. In international markets, spot gold registered $4,590 per ounce at 9 am UAE time, reflecting a 0.8 percent decrease.
Market analysts attribute the recent volatility to multiple factors. Vijay Valecha, Chief Investment Officer at Century Financial, noted that softer-than-anticipated US inflation data has strengthened expectations for two potential interest rate reductions by the US Federal Reserve within the year. Additionally, growing apprehensions regarding the Federal Reserve’s independence, fueled by reports of potential legal action against Chair Jerome Powell, have created uncertainty in rate markets and exerted downward pressure on the US dollar.
Despite the current correction, underlying market conditions remain supportive for gold. Geopolitical tensions continue to persist, including violent protests in Iran, renewed US pressure on Venezuela, fresh tariff threats associated with Tehran, and the ongoing conflict in Ukraine. These factors collectively contribute to sustained demand for assets that provide insulation from political outcomes.
From a technical analysis perspective, Century Financial identifies potential resistance for gold near the $4,675 level, based on trendline connections from highs recorded on October 27, November 13, and December 26, 2025. Support levels are anticipated around $4,550, a threshold that has been tested previously.
The market continues to demonstrate resilience despite the current pullback, with analysts monitoring both technical indicators and fundamental drivers for future price direction.