Gold Prices Dip in UAE Markets Following Record High

Gold prices in the UAE witnessed a slight downturn on Friday morning after reaching a historic peak in the previous session. 

The Dubai Jewellery Group reported a marginal price decrease across various precious metal variants, reflecting a shift in market dynamics amid profit-taking and subdued trading activity.

Market Trends:

At the opening of the markets on Friday, 24K gold was trading at Dh275.75 per gram, down from Dh276.75 per gram at Thursday’s close. 

Similarly, other variants, including 22K, 21K, and 18K, registered lower opening prices, indicating a temporary softening of demand in the wake of recent price surges.

Spot gold prices declined, trading lower at $2,279.77 per ounce as of 9:40 a.m. UAE time. Despite briefly touching $2,300 per ounce on Thursday, prices retreated later in the day, prompting profit-taking activities among investors.

Market Analysis:

Senior market analyst Alex Kuptsikevich observed that gold briefly surpassed $2,300 on Thursday, signaling a significant milestone albeit accompanied by profit-taking. 

He noted that while gold had shown consistent gains since March 25, it exhibited subdued performance on Thursday, prompting a cooling-off period.

Assessment of Gold’s Prospects:

Kuptsikevich highlighted the importance of labor market data in influencing gold prices, cautioning bulls to remain vigilant amidst prevailing market conditions. 

While acknowledging the recent surge in gold prices, he emphasized the potential impact of economic indicators, particularly those favoring the US dollar, on gold’s trajectory.