Dubai gold prices decline again, offering shoppers lower rates after April’s record rally.
Dubai: Gold prices slipped again on Thursday morning, offering jewellery buyers and investors a more attractive entry point after a volatile April that saw rates surge to record highs before easing sharply in the final week.
At 10:13am, 24K gold was priced at Dh547.25 per gram, down from Dh548.25 on Wednesday, while 22K gold slipped to Dh506.75 from Dh507.75. The latest drop puts 24K gold more than Dh40 below its April 17 peak of Dh588, while 22K is now nearly Dh38 lower than its high of Dh544.50 on the same day.
The decline is likely to be closely watched by shoppers in Dubai who had delayed purchases during the mid-April rally, when prices remained above Dh580 for several sessions. While the pullback does not make gold inexpensive by historical standards, it does ease costs for buyers considering wedding jewellery, investment coins or smaller purchases after weeks of record highs.
Prices retreat after mid-April highs
Dubai gold began April at Dh573 for 24K and Dh530.75 for 22K before climbing through multiple rounds of gains. Prices reached Dh575 on April 10, crossed Dh582 on April 14 and peaked at Dh588 on April 17, marking the strongest level of the month.
The rally began to lose momentum after April 20, when 24K gold was priced at Dh580.50 and 22K at Dh537.50. Prices then eased to Dh569.25 on April 22, briefly rebounded around April 24 and April 26, before declining more sharply in the final days of the month.
By April 28, 24K had dropped to Dh551.75, while 22K stood at Dh510.75. The downward trend continued on April 29 and again on April 30, taking 24K to Dh547.25 and 22K to Dh506.75.
Overall, 24K gold has fallen Dh21.75 in just over a week from April 22, and Dh34.75 from April 19, when it was at Dh582.25. For 22K buyers, the drop from Dh539 on April 19 to Dh506.75 represents a decline of Dh32.25 per gram.
Buyers get some relief
The recent pullback could help revive demand at jewellery stores, particularly among shoppers who had been waiting for prices to ease from recent highs. In Dubai, even a Dh10–Dh20 per gram drop can make a noticeable difference for families purchasing larger pieces or preparing for weddings and travel.
A 20-gram 22K jewellery purchase would now cost about Dh645 less—before making charges—compared with April 19 prices. Compared with the April 17 peak, the saving rises to around Dh755 for the same quantity, excluding retailer charges and VAT.
The latest decline follows a stabilisation in global bullion after a three-day slide, with spot gold holding near $4,540 after dropping 3.4% over the previous sessions.
Fed split clouds gold outlook
The Federal Reserve’s decision to keep interest rates unchanged was widely expected, but the meeting revealed deeper divisions within the central bank. Four officials dissented—the first such split since 1992—raising concerns about future policy direction, particularly around the timing of potential rate cuts.
Treasury yields moved higher after the decision, with two-year yields recording their biggest jump on a Fed announcement day since 2022. Rising yields typically weigh on gold, as bullion does not generate interest income.
Gold is now heading for a second monthly decline in April, even as the Iran conflict enters its third month and energy markets remain under strain. Prices have dropped about 13% since late February, although continued central bank buying and reserve diversification still support the longer-term outlook.
Oil keeps risk premium alive
Brent crude is trading above $124 a barrel after reports that Donald Trump is set to receive a briefing on new military options for Iran, heightening the risk of further escalation in the region. Elevated oil prices add complexity to the inflation outlook and make the path for interest rates less predictable.
Data from the World Gold Council showed central banks increased their gold holdings at the fastest pace in more than a year during the first quarter, with lower prices prompting fresh buying that helped offset some institutional selling.
