Gold Prices Dip After Early-Week Surge
Gold Prices Dip After Early-Week Surge
The gold market in Dubai has entered a trough once more after a strong price surge earlier in the week. This decline follows profit-taking activities that significantly reduced the prices of the precious metal. According to the latest data from the Dubai Jewellery Group, gold prices fell by Friday morning, reflecting global market trends.
Gold Prices in Dubai
The price of 24-carat gold dropped by 1 dirham, now available at 325.5 dirhams per gram. Other gold types also showed similar declines:
a, 22K: 301.25 dirhams per gram
b, 21K: 291.75 dirhams per gram
c, 18K: 250.0 dirhams per gram
This decrease is notable, particularly following the continuous rise in prices over the past three days.
Global Impacts and Trends
On the global market, the spot price of gold has stabilized around $2,685.9 per ounce, having dropped to $2,680.6 per ounce on Thursday night due to profit-taking. This 1.4 percent decrease is attributed to many investors choosing to sell after days of profitable price increases.
What Caused the Price Drop?
1. Profit-taking: The recent growth in gold prices prompted investors to realize profits. Rapid price hikes are often followed by similar corrections, where investors sell off their positions to capitalize on high prices.
2. International Market Movements: Gold prices are significantly influenced by global economic trends such as the dollar's exchange rate, interest rate changes, and inflation developments.
3. Psychological Levels: The price of gold broke the $2,700 per ounce psychological barrier on Thursday, further encouraging investors to start selling.
How Does This Affect the Local Market in Dubai?
Dubai remains one of the world's key gold markets, where buyers are not only interested in the quality of the precious metal but also competitive prices. Price fluctuations have a direct impact on the jewelry trade, as even small price movements can make a substantial difference in purchasing decisions.
The local market's dynamics continue to be shaped by international trends, but Dubai's favorable tax policies and the cultural significance of buying gold maintain demand, especially during festivals and holiday seasons.
What Can Be Expected in the Coming Period?
Although gold prices have fallen now, long-term prospects remain stable, especially amid global economic uncertainties. Gold continues to serve as a safe haven asset for investors seeking to counterbalance inflation and economic risks.
In Dubai, further price corrections are expected in the coming days before the market stabilizes again. For gold buyers, this could be a good opportunity to purchase favorite jewelry or investment-grade precious metals at lower prices.