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Dubai gold prices saw a sharp decline after briefly touching record highs, following a sudden sell-off in the global gold market that rattled metals trading worldwide.
In the UAE, gold prices fell from Dh665 to Dh629 per gram, marking a steep Dh35 drop within a short period. The metal had closed at Dh639 per gram the previous day, highlighting the volatility currently gripping the market.
Globally, gold prices plunged by more than 5% after reaching the historic $5,000 per ounce level for the first time. Prices later peaked at $5,111.07 an ounce before heavy selling pressure triggered a rapid reversal. The downturn extended across the broader metals market, with silver falling over 8%, while copper and nickel also moved lower.
Market analysts said the dramatic rally had become unsustainable. Kathleen Brooks, Research Director at XTB, told AFP that the “parabolic rise had to end,” noting that commodity prices had surged “too far, too fast.”
Gold’s recent surge was driven largely by heightened global uncertainty, with investors seeking safe-haven assets amid concerns over US trade policies, rising government spending, and inflation risks. According to Wealth Club’s Chief Investment Strategist Susannah Streeter, gold had surged past the psychologically significant $5,000 mark as geopolitical and economic tensions unsettled investors.
A weakening US dollar further fuelled the rally earlier in the week, boosting demand for dollar-denominated commodities such as gold and silver. However, once profit-taking began, the reversal was swift.
Silver mirrored gold’s movements, having touched a record above $110 an ounce earlier in the week before tumbling sharply.
For buyers in Dubai, the sudden fall serves as a reminder of how quickly global market swings can impact local gold prices, especially during periods of heightened volatility.
