Gold prices in Dubai have taken a downward turn this week, providing a welcome opportunity for shoppers as the Diwali festival approaches. As of Wednesday morning, the 24K gold variant dropped to Dh486.5 per gram, marking a total decline of Dh10.75 over the past month. Other variants have followed suit, with 22K, 21K, 18K, and 14K gold trading at Dh450.5, Dh432, Dh370.25, and Dh288.75 per gram, respectively. This dip mirrors international trends, where spot gold prices fell by 0.66 percent, reaching $4,034.46 per ounce.

Despite the recent price drop, industry experts suggest that the long-term outlook for gold remains supported by strong central bank buying and ongoing global geopolitical instability. According to Ross Maxwell, Chief Strategy Officer at VT Markets, the upcoming US midterm elections could serve as a major catalyst for the metal’s future performance. While aggressive Federal Reserve policies and stubborn inflation currently act as headwinds, a potential shift in fiscal policy or a weaker dollar following the elections could provide the necessary momentum for gold to recover and trend higher in the coming months.