Dubai gold prices plummet by over Dh33 in a single day before Eid Al Fitr
In a massive fall for the yellow metal, gold prices dropped more than Dh33 in a single day on Thursday, as a combination of logistical disruptions and global market pressures reshaped the bullion landscape just a day before Eid Al Fitr.The price of 24-karat gold was Dh584.5 per gram when markets opened on Thursday morning before sliding down to Dh554.25 by the time markets closed in the evening. It was a sharp decline from the Dh609 per gram level recorded earlier this week.The price of 22K, 21K, 18K, and 14K stood at Dh513.25, Dh492.25, Dh421.75 and Dh329, respectively. This comes sharp on the heels of the US Federal Reserve’s decision on interest rates on Wednesday and as the ongoing US-Israel-Iran war, which entered its 20th day, continued to disrupt markets worldwide.Stay up to date with the latest news. Follow KT on WhatsApp Channels.Several reasonsAccording to analysts, there are several reasons for this sharp fall. “Spot gold and silver took a sizeable hit following the Fed’s rate decision,” said Aaron Hill Chief Market Analyst at FP MARKETS. “This was partly due to the USD catching a bid, up 0.7 per cent per the USD index.”He added that with the Strait of Hormuz remaining blockaded, coupled with a series of Iranian attacks on energy infrastructure in the Middle East, the markets are going through a turbulent time.Ole Hansen, the head of Commodity Strategy at Saxo Bank pointed out that rising energy costs have “lifted inflation expectations and pushed markets toward a higher-for-longer rate outlook, supporting real yields and reducing the likelihood of near-term rate cuts,” he explained.Eid shoppersThe timing of the price drop coincides with the day before Eid Al Fitr, a period when jewellery demand traditionally surges across the UAE. With 24-karat gold now more than Dh50 below its March peak, shoppers are eyeing opportunities, though retail premiums remain a factor.For last-minute Eid shoppers, the current levels offer a more accessible entry point than the start of the month, even as volatility suggests prices could continue to fluctuate in the days ahead. “Usually, every Eid my husband buys gold jewellery for my daughter and me,” said Dubai resident Maha Hussain. “I just came to know that there has been a big drop. Gold is always a great investment so I think we will buy more than what we were planning to buy. This is definitely a windfall that we were not expecting. You could say, a nice Eid gift at an otherwise uncertain time.”Gold prices in Dubai drop below Dh600 per gram, lose Dh11 in 24 hoursDubai gold prices rise above Dh600 per gram again as dollar weakens
In a massive fall for the yellow metal, gold prices dropped more than Dh33 in a single day on Thursday, as a combination of logistical disruptions and global market pressures reshaped the bullion landscape just a day before Eid Al Fitr.
The price of 24-karat gold was Dh584.5 per gram when markets opened on Thursday morning before sliding down to Dh554.25 by the time markets closed in the evening. It was a sharp decline from the Dh609 per gram level recorded earlier this week.
The price of 22K, 21K, 18K, and 14K stood at Dh513.25, Dh492.25, Dh421.75 and Dh329, respectively. This comes sharp on the heels of the US Federal Reserve’s decision on interest rates on Wednesday and as the ongoing US-Israel-Iran war, which entered its 20th day, continued to disrupt markets worldwide.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Several reasons
According to analysts, there are several reasons for this sharp fall. “Spot gold and silver took a sizeable hit following the Fed’s rate decision,” said Aaron Hill Chief Market Analyst at FP MARKETS. “This was partly due to the USD catching a bid, up 0.7 per cent per the USD index.”
He added that with the Strait of Hormuz remaining blockaded, coupled with a series of Iranian attacks on energy infrastructure in the Middle East, the markets are going through a turbulent time.
Ole Hansen, the head of Commodity Strategy at Saxo Bank pointed out that rising energy costs have “lifted inflation expectations and pushed markets toward a higher-for-longer rate outlook, supporting real yields and reducing the likelihood of near-term rate cuts,” he explained.
Eid shoppers
The timing of the price drop coincides with the day before Eid Al Fitr, a period when jewellery demand traditionally surges across the UAE. With 24-karat gold now more than Dh50 below its March peak, shoppers are eyeing opportunities, though retail premiums remain a factor.
For last-minute Eid shoppers, the current levels offer a more accessible entry point than the start of the month, even as volatility suggests prices could continue to fluctuate in the days ahead.
“Usually, every Eid my husband buys gold jewellery for my daughter and me,” said Dubai resident Maha Hussain. “I just came to know that there has been a big drop. Gold is always a great investment so I think we will buy more than what we were planning to buy. This is definitely a windfall that we were not expecting. You could say, a nice Eid gift at an otherwise uncertain time.”
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