DUBAI – Gold prices in the UAE are in a free fall, having lost Dh30 a gram since the April high of Dh282.50, and 24K gold now selling at Dh252.50/gram. The sharp decline has brought about a buyer’s strike throughout Dubai’s souks, with both investors and jewelry enthusiasts playing a risky waiting game.
5 Reasons Dragging Gold Down
1️⃣ Dollar Dominance: Fed’s slow rate cuts strengthen USD, weakening gold
2️⃣ ETF Exodus: $3.5B withdrawn from gold funds worldwide in May
3️⃣ Stock Market Fever: UAE stock markets at all-time highs distract investors
4️⃣ China Slowdown: Subdued demand from world’s largest gold consumer
5️⃣ Profit-Taking: Traders take profits following 2024’s 18% increase
Critical Price Levels to Watch:
Dh245/gram: 2023’s “unbreakable” support level
Dh238/gram: Possible mass sell-off trigger
Best Buy Zone: Analysts indicate Dh240-245 range
Souk Standoff:
“Our shops are full of ‘just looking’ customers,” confesses Deira Gold Souk veteran Ramesh Kumar. “Even at these prices, everyone is waiting for another Dh5 drop.”
Expert Predictions:
• Technical View: Next support at Dh246 (200-day moving average)
• Key Perspective: Chinese central bank purchases can stabilize price
• Wild Card: Rising tensions in the Middle East could turn trend around overnight
Intelligent Buying Strategies:
DCA Method: Purchase little by little each week to smooth out costs
Eid Bonus: Hold out for pre-festival discounts from retailers in June
Digital Gold: Opt for ETFs for greater versatility
