Gold prices in Dubai fell early on Thursday and slipped below Dh500 for 24-karat gold after a big rally pushed prices above the key level in the last trading session.
The 24-karat gold rate was at Dh496.25 at 8:53 am on Thursday, down Dh4.50 from Dh500.75 on Wednesday. The 22-karat also fell by Dh4 from Dh463.75 to Dh459.75.
The decline occurred one day after gold prices rose strongly in Dubai. 24-karat gold price rose by Dh8.75 from Dh492 to Dh500.75, and 22-karat rate increased by Dh8.25 from Dh455.50 to Dh463.75.
The recent movement indicates the sharp volatility that Dubai’s gold market experienced during July, as prices were volatile in a short period of time.
Dubai Gold Prices See Wide Swings in July
Gold prices in Dubai have been in a range since the beginning of July. The 24-karat rate has fluctuated between Dh481.50 and Dh503 during the month so far.
The month started with 24-karat gold priced at Dh489.75. Then prices went above Dh500 on July 3 before reaching Dh503 on July 4. The rate stayed at that level on July 5, making it the highest price recorded in the month.
The market then corrected. The 24-karat rate fell to Dh499 on July 6 and dropped further to Dh490 on July 8. The prices recovered briefly to Dh497.25 on July 9 and remained around Dh496.50 on July 11 and July 12.
The downward trend intensified in the middle of the month. Gold prices dropped to Dh483.50 on July 13 and hit a monthly low of Dh481.50 on July 16 and July 17.
However, the market started to recover soon after. The 24-karat rate rose from Dh483 on July 20 to Dh492 on July 21, followed by a sharp jump to Dh500.75 on July 22.
So the decline Thursday is a pullback after the strong two-day recovery. Gold prices were still much higher than the month's lows, a very strong sign of the precious metals market turbulence.
As consumers and investors in Dubai see the changes coming up so fast, the timing of buying is even more important. As the market reacts to the general global economic and financial climate in daily fluctuations for jewellery or investment gold, buyers who see daily movements in price as a constant indicator of prices will continue to monitor the market in a way.
