Gold prices in the UAE have seen a welcome decline over the past week, offering a bit of relief for shoppers just in time for the upcoming Diwali and Navratri festive seasons. By the close of the weekend, the price for 22K gold had dipped below the Dh500 mark, settling at Dh497 per gram, while 24K gold dropped to Dh536.75 per gram. This downward trend, which also impacted 21K, 18K, and 14K variants, follows a period where spot gold hovered below the $4,500 per ounce threshold, largely driven by investors locking in profits after a significant rally.

Market experts, including Rania Gule from xs.com, suggest that this pullback is likely a temporary correction rather than a permanent shift in gold’s overall upward trajectory. While investors are closely watching the US Federal Reserve’s stance on interest rates and inflation, gold remains a favored safe-haven asset. Given the ongoing global economic uncertainty and geopolitical concerns, demand for the precious metal is expected to remain resilient, even if the dollar experiences short-term strength from hawkish monetary policy updates.