Gold prices in Dubai eased on Wednesday, with 24-karat gold trading at Dh523.50 per gram, down from Dh526 at the previous day's close. The other grades followed the same downward path: 22-karat settled at Dh484.75, 21-karat at Dh464.75, and 18-karat at Dh398.50 per gram.
Globally, spot gold traded at $4,334 an ounce, up a modest 0.11 per cent on the day — a gain too small to offset the pullback seen in Dubai's local market. The divergence points to specific pressures weighing on demand and pricing within the UAE market even as the broader metal held relatively steady worldwide.
Vijay Valecha, Chief Investment Officer at Century Financial, attributed the slide to a combination of factors. Renewed inflation concerns and a pickup in oil-buying interest, arriving after five consecutive sessions of losses, have added fresh pressure on precious metals, he said. He also pointed to expectations of a more hawkish US Federal Reserve, a dollar trading near its strongest level in two months, and ongoing geopolitical tensions in the Middle East as additional drags on the market.
Valecha added that an upcoming meeting between US and Chinese leaders is keeping investors cautious, feeding into broader market volatility. Technical indicators are also flashing signs of fading momentum, with the daily Relative Strength Index slipping below the 50 mark. Market watchers in Dubai are advising buyers and sellers alike to track price movements closely in the coming days, given the mix of monetary policy signals and geopolitical uncertainty currently shaping the gold market.