Dubai: Gold Prices Drop After Record High Ahead Of Wedding, Festival Season

Gold prices eased on Wednesday from the record-high reached on Tuesday in Dubai, bringing some relief for those jewellery shoppers who were in urgent need of buying jewellery.

The Dubai Jewellery Group data showed 24K trading at Dh454.25 per gram at the opening of the markets on Wednesday, down from a record high of Dh456.0 per gram reached on Tuesday.

Similarly, 22K slipped from an all-time high of Dh422.0 per gram on Tuesday to Dh420.5 per gram on Wednesday morning. While 21K and 18K were trading at Dh403.25 and Dh345.75 per gram, respectively.

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As the wedding season approaches in the UAE and the Indian Subcontinent, even a slight drop in gold prices can significantly impact overall spending. With festive celebrations also around the corner in October, a decline in gold prices is a welcome relief for those planning to purchase precious metal jewellery as gifts.

Globally, spot gold was trading at $3,771.5 per ounce, up 0.83 per cent.

Some analysts expect gold to ease in the coming months due to profit-taking after a strong rally, before it recovers again next year and could touch $4,000 per ounce in 2026.

Vijay Valecha, chief investment officer, Century Financial, said the gold rally is underpinned by growing expectations of further interest rate cuts from the Federal Reserve, following its first reduction last week.

“With markets now pricing in nearly two more 25-basis-point cuts this year, the weakening labour market and dovish signals from the Fed have fuelled bullish sentiment in precious metals.

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