Gold Prices Dip in Dubai After Record Highs, 24K Holds Above Dh550

Profit-taking and shifting sentiment soften demand, but geopolitical tensions and Fed cut expectations underpin market resilience.

DUBAI – Gold prices eased in Dubai on Thursday as investors locked in profits following a rally to historic highs, though local rates remained firmly above key levels with 24K trading above Dh550 per gram.

According to the Dubai Jewellery Group, 24K fell nearly Dh2 to Dh553.0 per gram. Other variants also declined, with 22K at Dh512.25, 21K at Dh491, 18K at Dh421, and 14K at Dh328.25 per gram. Globally, spot gold dropped 0.8% to $4,590 per ounce by 9am UAE time.

The slight pullback follows a surge driven by a combination of softer US inflation data, which reinforced expectations of two Federal Reserve rate cuts this year, and heightened geopolitical tensions from Iran to Ukraine.

“Softer-than-expected US inflation has reinforced expectations for two rate cuts, while concerns over the Fed’s independence have unsettled rate markets and weighed on the dollar,” said Vijay Valecha, Chief Investment Officer at Century Financial. “Geopolitical risks continue to push demand for assets insulated from political outcomes.”

From a technical standpoint, Valecha noted that gold faces resistance near $4,675, with key support around $4,550.

Despite the day’s dip, market sentiment remains broadly supportive for gold, as investors continue to seek safe-haven assets amid ongoing uncertainty.