The price of gold fell by up to Dh10 during the day on Monday, as the market continued to be volatile due to a combination of technical and fundamental factors according to experts.

In Dubai, the price of 24K fell to Dh481.50 on Monday evening, as opposed to Dh491.50 when the day started. Similarly, 22K, 21K and 18K also slipped to Dh445.50 from Dh455, Dh427.25 from Dh436.25, and Dh366.25 from Dh374 per gram, respectively.

Globally, spot prices fell by 3 percent to $3989.5 per ounce at 8:38 pm UAE time, while silver fell 3.84 percent to $46.75, continuing its downward slide.

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“Technically, bulls had pushed gold higher for nine consecutive weeks before last week, with the RSI remaining in overbought territory since early September,” said Dilin Wu Research Strategist at Pepperstone.“This indicates that bullish positions were overly concentrated, signaling the need for a healthy corrective pullback.

Gold prices had risen to record highs had risen to a record high of Dh525.25 on October 21, buoyed by several factors. Since then, the yellow metal witnessed its sharpest one-day decline in over a decade, retreating more than 6 per cent. Gold and jewellery buyers who purchased at peak rates during Diwali saw the value of their investments drop.

According to Nishin Thaslim, Chairman of Nishka Jewelry, international affairs have contributed to the downward trend.“One reason is that the trade war between China and the US is almost nearing an end,” he said.“This has increased global optimism and led to a dip in gold prices.”

Dilin added that market participants are anticipating that China may ease its rare earth export restrictions and that the Trump administration could extend the 90-day tariff pause- easing geopolitical uncertainties.

“Consequently, safe-haven flows that had supported gold shifted back into risk assets,” she said.“Additionally, the CME's 5.2 percent increase in margin requirements for gold and silver dampened short-term buying momentum.”

She added that gold is likely to trade within a“neutral to slightly bearish range this week”, depending on risk sentiment and key economic developments.

“With an October rate cut already largely priced in, the market is focused on Powell's tone after the FOMC decision: acknowledgment of cooling inflation and a potential end to balance sheet runoff would reinforce expectations for a 25bp December cut, supporting gold,” she said.“Conversely, an emphasis on lingering tariff effects or policy uncertainty could weigh on prices. Beyond data, the US-China leaders' meeting at APEC could serve as a catalyst: confirmation of concessions without escalation is likely to reduce safe-haven demand, imposing short-term pressure.”

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