Gold prices in Dubai dipped slightly during early trading as the recent rally slowed, with investors pausing after gains while closely watching global market cues and economic developments.
Dubai: Gold’s upward run pauses as prices edge lower in early trading
Gold prices eased slightly in early Dubai trading on Monday after posting strong gains over recent weeks.
At the start of the week, the price of 24-carat gold fell by Dh2.25 per gram to Dh544.00, while 22-carat gold declined by Dh2 to Dh503.75. Other categories also recorded modest drops, with 21-carat gold priced at Dh483.00 per gram, 18-carat at Dh414.00 and 14-carat at Dh323.00.
In the international market, spot gold was trading at $4,517.96 an ounce, reflecting a decline of 0.36 per cent.
Despite the dip, bullion remains close to record levels after touching an all-time high on Friday, supported by rising geopolitical uncertainty that has boosted demand for safe-haven assets.
Daniel Takieddine, co-founder and chief executive of Sky Links Capital Group, said the recent surge in gold prices has been driven by sustained inflows into gold-backed exchange-traded funds, continued buying by central banks and expectations that US monetary policy may become more accommodative over the medium term. He added that geopolitical risks remain high across multiple regions.
In Latin America, markets are closely watching developments surrounding the US blockade of Venezuelan oil exports. Eastern Europe continues to face ongoing tensions with no clear ceasefire in sight, while uncertainty persists in the Middle East. In Asia, strained relations between China and Japan are adding to investor caution, alongside recent developments across parts of Africa that have also weighed on sentiment.
Takieddine noted that from a policy standpoint, markets are still pricing in the possibility of two US interest rate cuts in 2026, a backdrop that typically favours non-yielding assets such as gold. He also pointed out that the upcoming end of US Federal Reserve Chair Jerome Powell’s term and the potential shift toward a more dovish leadership could further support bullion prices. With year-end nearing, thinner trading volumes could lead to sharper price fluctuations.
Market analysts noted that local demand in Dubai has remained relatively stable despite the slight price correction, with many buyers viewing the dip as an opportunity to enter the market. Retail jewellers reported continued interest from consumers ahead of the festive and wedding season, when gold purchases typically rise. However, some shoppers remain cautious, waiting for clearer signals on whether prices will soften further or resume their upward trend. Traders said that short-term movements are likely to remain volatile, influenced by global headlines, currency fluctuations and investor positioning after the recent rally.
Currency movements have also played a role in shaping gold prices, as fluctuations in the US dollar tend to have an inverse relationship with bullion. A firmer dollar in early trading sessions placed mild pressure on gold, prompting profit-taking among some investors. At the same time, ongoing concerns about inflation and global economic growth continue to support gold’s appeal as a store of value. Analysts believe that any sustained weakness in the dollar or renewed economic uncertainty could quickly push prices higher again.
Looking ahead, investors will be closely monitoring upcoming economic data releases and policy signals from major central banks for further direction. Inflation readings, employment data and comments from Federal Reserve officials are expected to influence expectations around interest rates. In addition, developments on the geopolitical front could rapidly shift market sentiment. Experts caution that while short-term pullbacks are natural after sharp gains, the broader outlook for gold remains supported by structural factors such as central bank demand, global uncertainty and long-term diversification strategies.
