Gold prices in Dubai tumbled on Friday morning, with 24K gold dipping below the Dh600-per-gram threshold as global bullion markets witnessed a sharp decline.
At the opening bell, 24K gold was priced at Dh599.75 per gram, falling from Dh610.75 the previous day—a swift drop of Dh11 per gram in just 24 hours. Other gold categories mirrored this slide: 22K gold slipped to Dh555.25, 21K to Dh532.5, 18K to Dh456.5, and 14K to Dh356.0 per gram.
The downturn in Dubai’s gold market followed global trends, with spot gold trading at $4,977.92 per ounce—recovering somewhat after touching a near one-week low but still below the crucial $5,000 mark. The previous day, gold prices had plunged almost three per cent as intensified selling swept through markets, triggered by a sharp drop in equities and breaking the psychological $5,000 support level.
Investors’ risk appetite was shaken further by stronger-than-expected US employment data, which showed 130,000 jobs added in January—well above predictions. The upbeat jobs report diminished hopes for an imminent US Federal Reserve rate cut, propping up the dollar and putting additional downward pressure on gold, a non-yielding asset.
Vijay Valecha, Chief Investment Officer at Century Financial, noted the resilient jobs numbers have led markets to expect the Fed’s next rate cut in July rather than June. However, a sharp downward revision in annual job growth forecasts for 2025 could help gold and silver prices find support in the longer term.
Despite the latest fall, gold remains close to historic highs, with its price movements closely tied to upcoming US inflation data and currency market shifts. As investors look for clues on the Fed’s next move, gold’s path forward will remain shaped by global economic signals and monetary policy expectations.
