Gold prices edged lower in Dubai and global markets on Thursday morning as investors locked in profits and safe-haven demand cooled slightly following a strong rally earlier in the week. In Dubai, 24-karat gold slipped to Dh553 per gram, while 22-karat gold fell to Dh512.25. Other variants, including 21K and 18K, also traded lower.
The pullback comes just days after gold reached record levels, driven by a combination of global uncertainty and shifting expectations for monetary policy. Recent gains were supported by growing bets that the US Federal Reserve will begin cutting interest rates later this year, a weaker US dollar, and heightened geopolitical tensions across multiple regions.
Unrest in Iran, ongoing conflict in Ukraine, and broader concerns about global stability have kept gold firmly in focus as a safe-haven asset. However, after reaching new highs, some investors opted to take profits, leading to the modest correction seen in early trading.
Market analysts say the move is a healthy consolidation rather than a trend reversal. Gold often experiences short-term pullbacks after sharp rallies, particularly when prices approach technical resistance levels. Despite the dip, sentiment toward the metal remains broadly positive.
For Dubai consumers, the slight easing may offer a short window of relief after weeks of rising prices. Jewellers say buyers remain cautious, with many opting for lighter designs or postponing major purchases. Investment interest, however, continues to hold up, especially among those viewing gold as a long-term hedge against inflation and currency volatility.
Globally, attention remains focused on upcoming US economic data and central bank signals, which could influence gold’s next move. Any confirmation of rate cuts or further escalation in geopolitical risks could quickly revive upward momentum. Conversely, stronger economic indicators or a rebound in the dollar may cap near-term gains.
Analysts emphasise that gold’s longer-term outlook remains supportive, underpinned by structural demand, central bank buying, and persistent global uncertainty. Short-term fluctuations, they say, are part of normal market behaviour.
As prices stabilise after their recent surge, buyers are being advised to track trends closely and align purchases with personal needs rather than attempting to time short-term movements. In an environment of shifting expectations, gold continues to play a central role for both consumers and investors navigating uncertain times.
