Dubai gold prices dip after Diwali; silver slides below $50 mark
Global gold falls over 5% from record highs amid profit-taking
DUBAI – Gold prices in Dubai fell below the Dh500 mark on Tuesday after the post-Diwali rally cooled off, following similar movements in international bullion markets.
The drop came as the US dollar strengthened and investors took profits after recent record highs, reversing a sharp climb that had dominated the market since early October.
Global factors – from tariff uncertainties to expectations of US interest-rate cuts – have collectively turned the tide for precious metals, dampening the momentum of last week’s surge.
Dubai gold market
According to the Dubai Jewellery Group, 24-carat gold was priced at Dh495.50 per gram on Tuesday, sliding below the key Dh500 threshold.
The 22-carat variety stood at Dh458.75, 21-carat at Dh440.00, and 18-carat at Dh377.00. These prices mark a sharp reversal from earlier highs when 24K had traded above Dh520 per gram.
The decline reflects the regional impact of global market corrections and signals a more cautious phase for buyers following the Diwali shopping rush.
Global price movements
Globally, spot gold fell more than 5 percent to around $4,092 per ounce at 7pm UAE time, recording its steepest one-day drop in five years after touching a record high of $4,381 per ounce a day earlier.
Silver mirrored the decline, plunging over 7 percent to $48.37 per ounce. The sell-off comes amid speculation of easing trade tensions between the US and China and a possible resumption of negotiations between Donald Trump and Chinese President Xi Jinping later this month.
Analysts expect the Federal Reserve to cut interest rates by 25 basis points at its upcoming policy meeting, which could influence the next direction for non-yielding assets like gold.
Wider metal trends
The drop extended across the precious metals complex. Platinum shed 5.4 percent to $1,550.10 per ounce, while palladium fell 5.1 percent to $1,425.19. Rising volatility, coupled with renewed optimism about a trade resolution, has temporarily eased demand for safe-haven assets.
Meanwhile, traders are monitoring inflation data and currency fluctuations for clues on whether gold’s record-setting rally might resume or pause further.