Gold Dips in Dubai, Analysts Predict Rebound in Coming Months

Gold prices in Dubai opened the week lower, with the price of 24-carat gold dropping by Dh10 per gram, even as market forecasts continue to point towards an upward trend in the coming months.

The price of 24K gold declined to approximately Dh546 per gram, down from Dh556 a day earlier. Other purities also recorded losses, with 22-carat gold falling to around Dh505.50 per gram.

The sharp single-day drop offers short-term relief for buyers, particularly in a market where even small per-gram fluctuations significantly impact overall purchase costs.

Despite the decline, analysts remain optimistic about gold’s near-term performance. Market expectations suggest prices could rise through May and June, supported by seasonal demand, global economic uncertainties, currency fluctuations, and supply constraints.

Globally, gold continues to show resilience, with prices holding key support levels and potential for further gains if macroeconomic conditions remain favourable. Currency movements, particularly a softer US dollar, are expected to play a crucial role in shaping price direction.

Long-term demand is also being influenced by central banks, especially in emerging markets, which are increasing gold reserves as a hedge against financial and geopolitical risks.

Market observers view the recent drop as a short-term correction rather than a reversal of the overall trend, with attention now focused on whether buyers will take advantage of lower prices or wait for further adjustments in the weeks ahead.