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Dubai: Gold prices plunge in early trade

Spot gold was trading at $2,735.71 per ounce, down 0.5 per cent

Published: Mon 28 Oct 2024, 9:59 AM

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Gold prices fell Dh1.75 per gram as markets in Dubai opened on Monday — the first trading day of the week.

The Dubai Jewellery Group data showed 24K trading at Dh331.0 per gram, down from Dh332.75 per gram at the close of the markets last week. Similarly, other variants also fell in early trade in Dubai with 22K, 21K and 18K trading at Dh306.5, Dh296.5 and Dh254.25 per gram, respectively. Last week prices hit an all-time high in Dubai and globally due to geopolitical tension in the Middle East and strong buying from China.

Spot gold was trading at $2,735.71 per ounce, down 0.5 per cent.

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The drop in prices is welcomed by Dubai and UAE shoppers ahead of the Indian festivals of Diwali and Dhanteras later this week. A large number of Indians buy gold and precious metal jewellery as this is considered auspicious during this festival. Dubai – popularly known as The City of Gold – is seeing its world-famous Gold Souk crowded with shoppers including its extension.

Rashid Al Harmoodi, senior director for property management at Ithra Dubai, said every year, the Dubai Gold Souk – The Extension sees a rising surge of local and international customers ahead of high-demand occasions like Diwali and Dhanteras.

“With 300 retailers offering an unrivalled selection of the finest gold and jewellery, combined with unmatched expertise, we guarantee our visitors an unparalleled shopping experience and access to the absolute best in the market. These festive moments play a crucial role in solidifying Dubai Gold Souk – The Extension’s leadership in the global gold trading arena, firmly cementing its status as the ultimate year-round destination for gold and fine jewellery,” he said.

Alex Kuptsikevich, chief market analyst at the FxPro, said gold continued to hit all-time highs in the first half of last week, peaking at $2,758 per ounce in the spot market. However, the price retreated and remained off the peak as caution grew towards the end of the week.

“We wouldn’t be surprised to see a pullback to the $2,670-$2,700 range in the upcoming week. This won’t break the strong bullish trend. But a decisive break below will make us cautious in anticipation of a deeper pullback,” said Kuptsikevich.

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