Dubai’s gold market witnessed a significant downturn on Monday as prices continued their sharp decline from last week’s historic highs. The precious metal’s value experienced a substantial drop, with 24K gold falling by Dh26.25 per gram at market opening, settling at Dh563.25 per gram according to Dubai Jewellery Group data.
This recent decline marks a dramatic reversal from Thursday’s peak of Dh666 per gram, representing a total decrease of Dh102.75 per gram within days. All gold variants in the Dubai market now trade below the Dh600 threshold, with 22K, 21K, 18K and 14K gold dropping to Dh521.5, Dh500.0, Dh428.75 and Dh334.25 per gram respectively.
The price correction triggered a wave of selling activity among UAE residents and investors who rushed to liquidate their gold and silver holdings. Market participants moved quickly to capitalize on the recent rally, believing the precious metals had reached their peak valuation.
International spot gold mirrored this trend, trading at $4,651.34 per ounce with a nearly five percent decline as the US dollar strengthened in global markets. This represents the first time since last month that Dubai’s gold prices have retreated below the Dh600 per gram level after previously surpassing this milestone for both 24K and 22K variants.
Market analyst Rania Gule of XS.com Mena attributed the selling pressure to a complex interplay of psychological factors and macroeconomic variables. “In phases that follow the achievement of record highs, markets are rarely driven by a single factor; rather, investor decisions are shaped by fears of losing accumulated gains, the rapid flow of news, and shifts in broader macroeconomic expectations,” she explained.
The current market behavior reflects typical profit-taking activity following exceptional price performance, with investors reassessing their positions amid changing market conditions and currency fluctuations.