Gold Rates Fall in Dubai Before Eid Shopping Rush

Gold prices in Dubai have dropped significantly just days before Eid, giving relief to buyers after weeks of high rates. The sudden fall is attracting shoppers, especially those planning to buy jewellery for weddings and festive gifting.

By Thursday evening, the price of 24-karat gold stood at Dh554.25 per gram. This marks a drop of more than Dh30 from the previous day’s Dh588 and around Dh87 lower than its March 2 peak of Dh641.

Similarly, 22-karat gold was priced at Dh513.25, down from Dh544.50 a day earlier and about Dh80 below its monthly high of Dh593.50.

Price Trend This Month

Gold prices started March on a strong note, with 24K gold trading above Dh630 and 22K close to Dh590. Rates peaked on March 2 before starting a gradual decline.

The downward trend became clearer after mid-March, with prices slipping below Dh610 and later reaching around Dh600 by March 17. In recent days, the correction has accelerated, pushing prices to current lower levels.

Global Factors Behind the Drop

International market trends have played a major role in the price fall. Gold recently went through a six-day losing streak before seeing slight recovery due to dip-buying.

However, pressure remains due to decisions by the US Federal Reserve, which kept interest rates unchanged and signaled fewer rate cuts this year. Higher interest rates reduce gold’s appeal compared to other investments.

At the same time, rising oil prices and global tensions have strengthened the US dollar, which usually puts downward pressure on gold prices.

Eid Buyers Watching Closely

The timing of this price drop is important as demand for gold jewellery usually increases ahead of Eid.

Many buyers who delayed purchases earlier due to high prices are now considering buying at current levels. The drop offers a better entry point, especially for bulk purchases like wedding jewellery.

However, experts say prices may remain volatile, and buyers are now deciding whether to buy immediately or wait for further declines.