Dubai’s gold market experienced a notable downturn this week as prices continued their descent for the second consecutive trading session. The precious metal’s decline, attributed primarily to a strengthening US dollar and subdued trading activity across Asian markets, has created favorable conditions for both retail consumers and strategic investors.
According to the latest data from the Dubai Jewellery Group, 24K gold opened Tuesday’s trading at Dh596.75 per gram, representing a significant drop from Monday’s closing price of Dh602.0 per gram. This downward trajectory has persisted for six consecutive days, cumulatively reducing gold prices by nearly Dh14 per gram across all variants.
The price correction has extended across all gold categories, with 22K, 21K, 18K, and 14K gold now trading at Dh552.5, Dh529.75, Dh454.25, and Dh354.25 per gram respectively. This broad-based decline has generated renewed interest among jewelry shoppers in the UAE, particularly those planning purchases for upcoming weddings and special events.
Concurrently, international spot gold prices reflected the trend, trading at $4,941.18 per ounce with a 1% decline as of 9:10 AM UAE time on Tuesday. Market analysts interpret this correction as a potential buying opportunity, with many investors increasing their exposure to both physical bullion and digital gold assets.
Vijay Valecha, Chief Investment Officer at Century Financial, provided expert analysis of the underlying market dynamics. ‘Recent US CPI data offered limited relief,’ Valecha noted. ‘While headline CPI benefited from energy price movements and core inflation moderated slightly due to softer shelter components, underlying details remain concerning. Core goods inflation has shown signs of firming, potentially indicating early effects of tariff implementations.’
The Federal Reserve’s monetary policy outlook has consequently adjusted, with Fed funds futures currently pricing approximately 62.1 basis points of cuts by year-end—equivalent to roughly two and a half quarter-point adjustments. This anticipated easing cycle, potentially beginning in June and extending through the second half, traditionally provides support for gold valuations.
Valecha further highlighted gold’s complex behavior during equity market stress periods, noting that ‘in times of extreme equity market distress, the precious metal sometimes experiences correlated declines as investors liquidate liquid assets to cover losses elsewhere.’ This characteristic underscores gold’s dual role as both a safe-haven asset and a liquid financial instrument.