Dubai, UAE — Dubai's gold market handed shoppers an unexpected Eid gift on Thursday evening, with prices dropping more than Dh30 in a single session to reach their lowest levels in weeks. For buyers who have been holding off since the March spike, the window has reopened — at least for now.
By 7 pm on Thursday, 24-karat gold was priced at Dh554.25 per gram, down from Dh588 the previous day. That puts it Dh87 below the Dh641 peak recorded on March 2 — the highest level seen so far this month. The 22-karat variant followed a parallel path, settling at Dh513.25, compared to Dh544.50 on Wednesday and Dh80.25 below its Dh593.50 March peak.
How the Month Unfolded
Gold started March at elevated levels, hovering above Dh630 for 24-karat before spiking to its month-high on March 2. Prices held above Dh620 as late as March 11, supported by regional uncertainty and global risk sentiment.
The trend began to shift decisively after mid-March. Rates slipped below Dh610, then below Dh600, before Thursday's sharper correction brought prices into the mid-Dh550s. The cumulative fall from peak to current level now exceeds Dh85 per gram — a meaningful difference for buyers making larger purchases like wedding sets or Eid gift collections.
What's Driving the Pullback
The drop mirrors moves in international bullion markets. After a six-day losing streak, gold found some support on Thursday as dip-buyers stepped in — but the broader picture remains mixed:
- US Federal Reserve policy: The Fed held interest rates steady and signalled limited scope for cuts in 2026, keeping bond yields elevated and reducing gold's relative appeal as a non-yielding asset
- Stronger US dollar: Rising oil prices tied to the Middle East conflict are feeding inflation fears and supporting the dollar — which typically weighs on commodities priced in USD, including gold
- Muted crisis premium: Despite ongoing regional conflict, gold has not delivered the surge some analysts expected — suggesting markets are pricing in containment rather than escalation
Should Eid Shoppers Buy Now?
That's the question drawing the most attention in Dubai's gold souks this week. The timing of the pullback — arriving just ahead of Eid — is notable. Jewellery demand typically surges during the holiday period, and buyers who delayed purchases during the earlier rally are now looking at a more accessible entry point.
On a year-to-date basis, gold remains up, so current levels are not cheap in historical terms. But compared to where prices were at the start of March, the Dh85+ discount represents a genuine opportunity for those planning significant purchases.
The risk is that the correction has further to run — or that it reverses quickly if global sentiment shifts. For UAE gold market watchers, the next few sessions before Eid will be closely watched.
Current Gold Prices in Dubai (Thursday Evening)
- 24-Karat: Dh554.25 per gram
- 22-Karat: Dh513.25 per gram
- Drop from March peak (24K): Dh87 per gram
- Drop from March peak (22K): Dh80.25 per gram
Whether this is the floor or just a pause in a broader correction will depend largely on what happens with the US dollar, Federal Reserve guidance, and regional developments over the coming days.
