Consumers and investors across Dubai got a respite at retail counters on Friday as prices of gold in the emirate ended the week’s erratic trading session on a declining trend. This decline in the jewelry centers of Dubai follows the high cost of energy amid expectations of tightening measures by the US Federal Reserve.
Dh514.25 per gram was recorded for 24-karat gold on local benchmark levels in Dubai, marking no change from the closing price of the previous day. On the other hand, within a wider period of 28 days, gold prices have significantly declined, falling by approximately Dh40 from Dh554.50 per gram that prevailed at the end of August. Lower purity tiers followed suit, with 22-karat gold trading at Dh476.25 per gram and 14-karat gold stabilizing at Dh305.25.
Global spot gold hovered around $4,263.34 per ounce in local trading, reflecting a roughly 2 percent decline over the week despite brief intraday gains. Higher US Treasury yields and a resilient dollar index, fueled by bets on extended monetary tightness, have curtailed appeal for non-yielding assets, directly influencing pricing across Dubai’s exchange desks. Additionally, investors remain cautious as shifting oil prices and geopolitical developments keep broad commodity sentiment fluctuating rapidly.
Fluctuations in crude oil and diplomatic developments over regional trade routes further added to weekly market swings. Commodity strategists noted that while rising real yields typically spark widespread liquidations, steady retail buying power in key Asian hubs alongside sustained demand in Dubai’s Gold Souk have provided a buffer, preventing prices from breaching mid-summer lows.
Merchants across Dubai’s historic retail sector report that despite short-term fluctuations, consumer footfall remains healthy as buyers leverage recent price dips to purchase jewelry and investment bars. Analysts emphasize that while monetary policy continues to trigger short-term turbulence, gold’s core value proposition as a portfolio hedge remains firmly recognized by both retail and institutional buyers throughout the emirate.
