Dubai’s gold market witnessed a slight pullback on Christmas Day, interrupting a three-day streak of record-breaking valuations. The opening rates on Thursday saw 24K gold trading at Dh539.75 per gram, a modest decline from Wednesday’s peak of Dh542 per gram.
Concurrently, other variants including 22K, 21K, 18K, and 14K were quoted at Dh499.75, Dh479, Dh410.75, and Dh320.25 respectively. In global markets, spot gold held steady at $4,479.53 per ounce by mid-morning, while silver demonstrated remarkable stability at $71.91 per ounce.
The recent correction follows an extraordinary monthly performance where gold appreciated by 7.48% and silver skyrocketed by an impressive 35.36% over the past thirty days. This sustained rally has significantly altered consumer behavior in the UAE, with shoppers increasingly opting for lighter jewelry pieces or shifting preferences toward diamond accessories amid escalating prices.
Market analysts attribute gold’s resilience to multiple supportive factors. Joseph Dahrieh, Managing Principal at Tickmill, noted that despite the consolidation, the metal remains underpinned by sustained safe-haven demand. “Geopolitical tensions across Eastern Europe, the Middle East, Asia, and Latin America continue to drive避险资产 (safe-haven asset) flows with little evidence of near-term de-escalation,” Dahrieh explained.
The robust US economic data, including Q3 GDP growth at 4.3% annualized pace, has surprisingly failed to alter the broader macroeconomic narrative. Market expectations continue to price in monetary easing in 2026, with a base case of two rate cuts that could further support gold valuations.
Investment flows remain decidedly positive with gold-backed ETFs recording renewed inflows and central banks consistently adding to their reserves. This combination of accommodative rate expectations and persistent geopolitical uncertainty is expected to remain the primary driver shaping gold’s trajectory in the coming months.
Industry experts have characterized 2025 as a defining year for precious metals, with many analysts maintaining a broadly bullish outlook. Price forecasts predominantly cluster between $4,500 to $5,000 per ounce, suggesting the recent dip may represent a temporary consolidation rather than a trend reversal.