Gold prices in Dubai experienced a notable decline at the week’s opening, with the precious metal slipping below the Dh600 per gram threshold. As of 9 AM UAE time on Monday, 24K gold registered at Dh599.75 per gram, marking a decrease of Dh7.75 from the previous week’s closing figures.
The downward trend extended across various gold purities, with 22K, 21K, 18K, and 14K categories settling at Dh555.25, Dh532.50, Dh456.25, and Dh356.00 per gram respectively. In international markets, spot gold witnessed a decline exceeding one percent, trading at $4,986.72 per ounce amid thin trading activity and investor profit-taking maneuvers.
Market analysts attribute this movement to a healthy market rebalancing phase following recent high volatility. Ahmad Assiri, Research Strategist at Pepperstone, observed that gold is currently trading cautiously below the $5,000 psychological barrier, indicating a period of consolidation. ‘Following the metal’s testing of levels near $5,400–$5,500 and subsequent strong price fluctuations,’ Assiri noted, ‘the market has entered a relatively narrower trading range demonstrating acceptance of current valuations.’
The strategist highlighted the significance of the $4,700-$4,800 range, which has shown considerable resilience after the correction witnessed earlier this month. This price consolidation, characterized by moderated volatility, creates favorable conditions for long-term investors seeking to establish positions near key psychological price levels.