DUBAI: The gold market in the UAE has witnessed a significant shift as prices continue to decline, marking the lowest rate since March 12.
As of now, a gram of 22K gold is priced at Dh333.25, a notable drop from the Dh338 to Dh348 range seen throughout much of the month.
This recent downturn follows a peak earlier this month, where prices soared to an all-time high of Dh355, showcasing the volatile nature of the gold market.
The fall in prices has sparked renewed interest among local investors. "There’s some relief for gold shoppers after a long time. We have seen UAE residents come back for gold coins and bars. The mood is to invest rather than go for jewellery again," Abdul Salam K. P., Vice-Chairman of Malabar Gold & Diamonds told Gulf News.
This shift in consumer behaviour suggests that residents are taking advantage of lower prices to make strategic purchases, particularly in light of the upcoming ‘Akshaya Trithiya’ on April 30, a festival traditionally associated with buying gold.
Gold rates in global market
In the global market, gold has also faced pressure, trading below $3,000 per ounce after a peak of $3,167 earlier this month. Analysts suggest that the decline is linked to investor sentiment shifting towards the US dollar amid escalating trade tensions. As the dollar strengthens, gold becomes more expensive for holders of other currencies, leading to decreased demand.
April 7 saw gold prices falling by more than 2 percent as concerns over a potential global recession escalated following announcements of sweeping tariffs by the US government. Spot gold was reported at $2,963.19 per ounce, reflecting a near four-week low. The fluctuating nature of gold prices is further exacerbated by the ongoing political landscape, with fears of a trade war prompting market volatility.
Dubai gold rate
In Dubai, the current prices reflect the broader trend in international markets. On Monday, 24-carat gold was recorded at Dh359.75, while 21-carat and 18-carat gold dropped to Dh319.50 and Dh273.75, respectively. Despite the recent dip, experts remain cautiously optimistic about gold’s future.
As the situation unfolds, local buyers are capitalising on the opportunity presented by the recent dip in prices. With the global market dynamics at play, the Dubai gold rate is likely to remain in flux as traders navigate the uncertainties ahead.