Gold Prices Drop Significantly in Dubai

Gold Price Falls in Dubai: A 10 Dirham Drop in 24 Hours

The gold price significantly decreased in Dubai over the past 24 hours, dropping almost 10 dirhams per gram after showing a decline globally. The price of the precious metal slipped below 3,200 dollars per ounce on Thursday morning, partly influenced by the U.S.-China tariff reduction agreement affecting the world's two largest economies and the introduction of a 90-day pause.

Current Prices in Dubai

According to the Dubai Jewellery Group:

24 karat gold: 378.5 dirhams/gram (previously 388.25 on Wednesday)

22 karat: 350.5 dirhams/gram (a drop of 9.25 dirhams)

21 karat: 336.5 dirhams/gram

18 karat: 288 dirhams/gram

This drop is particularly noteworthy as gold has long maintained around the 3,200-dollar level globally, yet the spot price stood at 3,193.34 dollars, marking a 1.5% daily decrease.

What is Behind the Decline?

Several factors contribute to the decline:

U.S.-China Tariff Reduction: The two countries agreed on certain tariff reductions and implemented a 90-day "truce," temporarily reducing economic tensions. This diminishes investors' interest in gold as a safe haven.

Upcoming U.S. Economic Data: Markets are eagerly awaiting the Federal Reserve's next steps, which could significantly influence the future gold price. Inflation, interest rates, and economic performance have a direct impact on the appeal of the precious metal.

Where is Gold Heading?

The market is currently in a wait-and-see mode. Analysts suggest that if gold's price fails to maintain the 3,150 dollar level, the next stop might be 3,100 dollars. However, gold prices often respond rapidly to global uncertainties, so any geopolitical or financial shocks could reverse the trends.

What Does This Mean for Buyers in Dubai?

In Dubai - globally renowned for its favorable gold prices - this price drop provides an opportunity for those looking to purchase jewelry. Based on the current trends, it is advisable to monitor the coming days, as another price drop could present even more favorable entry points in the market.

(Source of the article: Data from Dubai Jewellery Group.)