Dubai: Gold prices in the UAE rebounded on Wednesday morning after declining earlier, as investors seized what they saw as an attractive buying opportunity following a sharp global correction in the precious metal.
The yellow metal had fallen more than two per cent on Tuesday in international markets, briefly dipping below the $4,900 per ounce mark. However, bargain hunting supported a recovery, pushing global prices higher during early Wednesday trade.
According to market data, 24K gold opened at Dh594.5 per gram, while 22K was priced at Dh550.5 per gram. Meanwhile, 21K traded at Dh528.0, 18K at Dh452.5, and 14K at Dh353.0 per gram.
Globally, spot gold was trading at $4,934.9 per ounce, up nearly one per cent in early trading after slipping below $4,900 earlier in the session.
Investors Capitalise on Dip
Market analysts say the rebound reflects renewed buying interest after prices softened significantly. The correction encouraged both retail buyers and institutional investors to re-enter the market at lower levels.
Gold often experiences short-term volatility driven by global economic signals, currency fluctuations, and shifts in investor sentiment. However, dips frequently trigger fresh demand, particularly in key markets like the UAE where gold remains a preferred asset for investment and jewellery purchases.
UAE Gold Market Remains Active
The UAE, particularly Dubai, continues to be a major regional hub for gold trading and jewellery retail. Price movements in global markets directly influence local rates, making the emirate highly responsive to international trends.
With global economic uncertainties and inflationary pressures still present in various markets, gold continues to attract investors seeking a relatively stable store of value.
Market participants will now closely watch upcoming economic data and currency movements to gauge the next direction of prices.
