If you’ve been waiting for gold prices to drop, this might be your moment. Gold in Dubai just hit its lowest level in more than two weeks on Friday, giving buyers a brief opportunity after a month of wild price swings.
As of 8.30am on February 6, 24-karat gold was going for Dh581.25 per gram, down from Dh585 the day before. 22-karat gold also slipped to Dh538.25, compared to Dh541.75 on Thursday, according to local market data.
January was wild, and February started softer
The latest drop comes after a seriously bumpy ride through late January and early February. Gold prices shot up toward the end of January, with 24-karat briefly climbing above Dh639 per gram on January 28. But that didn’t last — prices reversed hard the very next day.
That spike? Totally unsustainable. Prices fell steadily as the month wrapped up, stabilized briefly around Dh589 in early February, then dropped again to around Dh564 on February 2. There was a rebound earlier this week that pushed prices back above Dh594, but the momentum didn’t stick. Now we’re back to the lowest point in 15 days.
Global markets are still all over the place
International precious metals markets have been shaky, and that’s spilling over into Dubai. Silver, which tends to be more volatile because there’s less trading volume, has been swinging like crazy. At one point it dropped nearly 10% before bouncing back, after crashing toward $64 an ounce.
That sell-off wiped out most of silver’s January gains, leaving it down about 40% from its late-January peak. Ouch.
Gold has held up better, though. Sure, it’s had pullbacks, but it managed to recover some losses and even edge higher globally on Friday, even while the rest of the precious metals market stayed under pressure.
So what’s causing all this chaos?
Analysts say a lot of it comes down to heavy speculation in January. Investors were piling into leveraged exchange-traded products and options during the rally, pushing prices up and up — until the market suddenly reversed course at the end of last week.
With sentiment still shaky and global signals changing fast, traders are expecting more ups and downs in the near term.
For Dubai shoppers and investors, this dip is a window — but don’t expect it to stay open long. Experts are warning that price movements could stay unpredictable over the next few days, so if you’re planning to buy, keep a close eye on the market.
