Gold prices in Dubai have once again crossed the closely watched Dh600 mark, signaling renewed caution among jewellery shoppers amid ongoing market volatility.
On Thursday morning, 24-karat gold was priced at Dh600.75 per gram, edging up from Dh600.50 the day before. The 22-karat rate held steady at Dh556.25 per gram. This return to Dh600 territory highlights just how turbulent February has been for gold, with sharp swings keeping both buyers and retailers on their toes.
A month of ups and downs
February has seen gold prices swing wildly. The month started with rates below Dh590, followed by a surge past Dh610 in the second week. That rally proved short-lived as prices quickly dropped back to the mid-Dh590s before rebounding again. In mid-February, the pattern continued: prices briefly topped Dh607, then slipped toward Dh590, only to climb back above Dh600.
The uncertainty has prompted many shoppers, particularly those eyeing wedding or festival jewellery, to wait for clearer price signals before making major purchases. Retailers report that while foot traffic has remained steady, customers are delaying big-ticket buys and tracking daily price updates more closely than ever.
Global forces at play
Market analysts say the volatility is being driven more by international developments than local demand. Globally, spot gold steadied after a 2% gain in the previous session, though activity was quieter in parts of Asia due to holidays.
Recent signals from the US Federal Reserve have also played a role. Minutes from the Fed’s January meeting showed policymakers in no rush to cut interest rates, dampening hopes for cheaper borrowing costs. A stronger US dollar and robust economic data have added further pressure to gold’s price.
Despite the short-term turbulence, most major global banks remain optimistic about gold’s long-term prospects, citing ongoing geopolitical risks and policy uncertainty as supportive factors. For now, though, the choppy market means Dubai shoppers are likely to keep watching the price charts—and holding off on major purchases—until there’s a clearer trend.
