Gold holds steady after steep March decline as UAE buyers tread carefully.
Dubai: Gold prices in Dubai opened slightly higher on Monday, indicating early signs of stability after a turbulent month marked by sharp fluctuations and a steep correction from March’s highs.
As of 8:35 am, 24-karat gold was trading at Dh541.50 per gram, a slight rise from Dh541.25 the previous day, while 22-karat remained steady at Dh501.25. The modest change reflects a market that has calmed after weeks of heavy selling, with buyers entering cautiously rather than pushing prices upward.
From peak to correction
Gold prices in March saw a dramatic swing. The month began with 24-karat gold trading above Dh640 per gram and 22-karat near Dh590, buoyed by strong global demand and geopolitical tensions. By mid-March, however, 24-karat had slid into the Dh520–Dh550 range, with 22-karat edging closer to Dh500, signaling a shift in market sentiment after the prolonged rally.
The monthly trend highlights a swift reversal in momentum. Prices above Dh620 in early March gradually softened, before a sharp mid-month drop pushed 24-karat gold below Dh530. A short-lived rebound ensued, but it lacked staying power, leaving gold trading in a tighter range as the month drew to a close.
Steadying, but trend remains uncertain
In late March, the pace of gold’s decline eased, and price swings became more contained. Currently, 24-karat is trading mostly between Dh528 and Dh545, while 22-karat hovers around Dh488 to Dh505.
The market has seen uneven movements, with brief recoveries offset by pullbacks, indicating an attempt to establish a floor rather than a sustained rally. Buyers are cautiously returning, though demand remains selective and sensitive to price levels.
Global trends keep gold under pressure
International developments continue to influence Dubai’s market. Gold steadied after posting its first weekly gain since the Middle East conflict escalated, with dip-buyers supporting a modest recovery from earlier losses. Bullion remains near $4,500 an ounce, showing that investors are willing to step in at lower levels despite ongoing market uncertainty.
Geopolitical tensions remain a key factor, as fresh regional attacks and heightened military activity feed into inflation concerns and shape interest rate expectations. Since the conflict began at the end of February, gold has dropped around 14%, pressured by rising oil prices, weaker equity markets, and tighter liquidity, while expectations of higher rates have further dampened demand for non-yielding assets.
Cautious buying returns locally
In the UAE, the recent price correction has prompted some buyers to return, particularly for jewellery purchases. Demand is selective, however, with shoppers remaining cautious amid the uncertain global backdrop.
Near-term outlook
Gold prices are likely to stay range-bound for now, with any clear direction dependent on developments in the geopolitical landscape, shifts in inflation indicators, and changes in interest rate expectations. Investors and buyers are expected to continue taking a measured approach, waiting for greater clarity before committing to larger purchases.
