Gold Prices in Dubai Extend Slide to Fifth Day, Offering Diwali Bargains
By Dubai Currents Staff2 min read
Gold prices in Dubai fell for the fifth straight session on Friday, hitting their lowest level in more than two months and providing a timely boost for buyers ahead of the Diwali festival.
The 24K variant opened at Dh482.75 per gram on Friday morning, down Dh3 from Thursday’s close of Dh485.75 per gram. Other grades also declined: 22K slipped to Dh447.0, 21K to Dh428.5, and 18K to Dh367.5 per gram.
Global Market Pressures
Spot gold dropped 0.8 percent to $4,011 per ounce, while silver lost 1.8 percent to $198. The precious metal’s retreat comes as rising oil prices stoke inflation fears and reinforce expectations that the US Federal Reserve may keep interest rates higher for longer.
Ranim Turfa, head of research and market analysis for Mena at Tickmill, said gold edged lower as higher crude prices revived inflation concerns and strengthened hawkish monetary policy bets ahead of next week’s Fed meeting.
“Elevated tensions in the Middle East could keep crude prices supported, sustaining pressure on the Fed to maintain a tight stance. While the Fed is widely expected to hold rates steady in October, markets continue to price in a December hike, and expectations of further tightening in 2027 could add to the headwinds for gold. Whether those hikes materialise this year or next is likely to remain the key driver of sentiment towards the metal,” Turfa said.
Safe-Haven Demand Weakens
Dilin Wu, research strategist at Pepperstone, noted that gold is under pressure from higher-for-longer rate expectations and broader market deleveraging.
“Rather than attracting safe-haven demand, the sharp sell-off in US equities may have prompted some investors to liquidate gold positions to cover losses or meet margin calls elsewhere,” Wu added.
Festive Season Opportunity
The sustained decline in gold prices is a welcome development for UAE jewellery buyers as Diwali approaches, a period traditionally considered auspicious for purchasing precious metals. Lower prices make gold jewellery, coins and bars more affordable, allowing households to buy more within their budgets or opt for heavier pieces without significantly increasing spending.
The price drop could also draw back buyers who postponed purchases during the recent rally, potentially boosting retail sales during the festive season.
