Dubai’s gold market witnessed a significant recovery on Tuesday morning as prices surged by Dh19 per gram, partially offsetting the substantial losses incurred during the previous trading session. The precious metal’s 24K variant climbed to Dh579.75 per gram at market opening, marking a notable reversal from Monday’s decline of nearly Dh29.
The price resurgence extended across all gold variants, with 22K reaching Dh537.0, 21K at Dh514.75, 18K trading at Dh441.25, and 14K rising to Dh344.25 per gram. This domestic recovery mirrored global trends where spot gold experienced an impressive surge of over four percent, reaching $4,829 per ounce.
This market movement follows Friday’s dramatic repricing event that saw metals undergo their steepest declines in decades. Gold entered a pronounced corrective phase after achieving historic peaks near the $5,600 level, subsequently retreating below $4,900—representing a single-session loss exceeding nine percent.
Despite this volatility, financial institution JP Morgan maintains a strongly bullish medium-term outlook for gold. The firm has projected potential prices reaching $6,300 per ounce by the end of 2026, driven primarily by sustained demand from central banks and investors. According to their analysis, central banks are expected to purchase approximately 800 tonnes of gold this year alone.
Market analysts emphasize that the long-term structural narrative supporting gold remains firmly intact. Ahmad Assiri, Research Strategist at Pepperstone, noted that ‘central banks’ price-insensitive accumulation of reserves’ continues to provide fundamental support despite recent market fluctuations. The diversification trend away from paper assets toward real assets appears well-entrenched and likely to continue, suggesting ongoing strength in the gold market despite short-term volatility.