Stabilising, but no clear direction
In the second half of March, the pace of declines slowed and price movements became more contained. Recent sessions show 24-karat largely trading between Dh528 and Dh545, while 22-karat has hovered between Dh488 and Dh505.
The pattern has been uneven, with short-lived recoveries followed by pullbacks, suggesting that the market is attempting to find a base rather than building a sustained upward trend. Buyers have started to re-enter, though demand remains measured and highly price-sensitive.
Global cues keep pressure on
International markets are also shaping local sentiment. Gold steadied after posting its first weekly gain since the Middle East conflict began, with dip-buying helping prices recover from earlier losses. Bullion held near $4,500 an ounce, indicating that investors are willing to step in at lower levels even as broader market conditions remain uncertain.
The geopolitical backdrop continues to weigh on outlook. Escalation risks have increased following fresh regional developments, including attacks on infrastructure and rising military presence. These factors are feeding into inflation concerns and shifting expectations around interest rates.
Gold has fallen about 14% since the conflict began at the end of February, reflecting pressure from rising oil prices, equity market weakness, and tighter liquidity conditions. Expectations of higher interest rates have also reduced the appeal of non-yielding assets like gold.
Buyers return, but cautiously
In the UAE, the correction has started to attract interest from shoppers who had stepped away during the rally. Lower price levels are encouraging selective buying, particularly for jewellery purchases, though sentiment remains cautious given the uncertain global outlook.
Prices are expected to remain range-bound in the near term, with direction tied closely to geopolitical developments, inflation signals, and interest rate expectations.
– With inputs from Bloomberg.
Nivetha Dayanand is Assistant Business Editor at Gulf News, where she spends her days unpacking money, markets, aviation, and the big shifts shaping life in the Gulf. Before returning to Gulf News, she launched Finance Middle East, complete with a podcast and video series.
Her reporting has taken her from breaking spot news to long-form features and high-profile interviews. Nivetha has interviewed Prince Khaled bin Alwaleed Al Saud, Indian ministers Hardeep Singh Puri and N. Chandrababu Naidu, IMF’s Jihad Azour, and a long list of CEOs, regulators, and founders who are reshaping the region’s economy.
An Erasmus Mundus journalism alum, Nivetha has shared classrooms and newsrooms with journalists from more than 40 countries, which probably explains her weakness for data, context, and a good follow-up question.
When she is away from her keyboard (AFK), you are most likely to find her at the gym with an Eminem playlist, bingeing One Piece, or exploring games on her PS5.
