Dubai: Gold Prices Drop From An All-Time High In Early Trade

Gold prices slipped in Dubai on Wednesday morning after touching an all-time high on Tuesday.

The Dubai Jewellery Group data showed 24K trading at Dh443.75 per gram at the opening of the markets on Wednesday, down from a record high of Dh445.25 per gram at the close of the markets on Tuesday. Similarly, 22K, 21K, and 18K opened lower at Dh410.75, Dh393.75 and Dh337.75 per gram, respectively.

Spot gold crossed the $3,700 per ounce mark for the first time ever on Tuesday, driven by safe haven demand, a weaker dollar, and central bank buying. Commodity analysts project a healthy correction in gold before it recovers again to reach $4,000 per ounce in 2026.

On Wednesday morning, spot gold was trading at $3,680.57 per ounce, down 0.22 per cent.

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Linh Tran, market analyst at xs, said gold has just set a new historical high around $3,703 per ounce, reflecting the combined strength of monetary easing expectations and increasing safe-haven flows. This development shows that global investors are increasing their gold positions ahead of the September 18 US Federal Reserve meeting, against the backdrop of ongoing economic and geopolitical uncertainties.

“At present, what the market is focusing on is not only whether the Fed will cut interest rates, but also the accompanying message. If the Fed takes a dovish stance and opens the door to a clear easing cycle, real yields will have room to decline, the dollar will weaken, and gold will continue to find support. Conversely, a cautious or hawkish tone could trigger a short-term correction, even though the long-term trend may remain intact,” said Tran.

Eric Chia, financial markets strategist at Exness, said that exchange-traded fund (ETF) demand for precious metal added to the gold rally momentum.“Gold holdings continued to rise as gold ETFs added another 15 tons last week. However, inflows slowed down relative to the two previous weeks. The backdrop of political interference in the Fed also continued to lend support, as a US appeals court blocked President Donald Trump's attempt to dismiss Governor Lisa Cook,” said Chia.

“Geopolitical tensions provided further tailwinds. In the Middle East and in Eastern Europe, tensions continue to mount. Both conflicts reinforced defensive positioning in gold,” Chia added.

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