The decline is likely to be watched closely by UAE shoppers who had delayed purchases during the mid-April rally, when prices stayed above Dh580 for several sessions. The retreat does not make gold cheap by historical standards, but it does ease the cost for buyers looking at wedding jewellery, investment coins or smaller purchases after weeks of record pricing.
Prices retreat after mid-April highs
Dubai gold started April at Dh573 for 24K and Dh530.75 for 22K before moving through several rounds of gains. Prices climbed to Dh575 on April 10, crossed Dh582 on April 14 and reached Dh588 on April 17, marking the strongest point of the month.
The rally began to lose strength after April 20, when 24K stood at Dh580.50 and 22K at Dh537.50. Prices then eased to Dh569.25 on April 22, briefly rose again around April 24 and April 26, before dropping more visibly in the final days of the month.
By April 28, 24K had fallen to Dh551.75, while 22K stood at Dh510.75. The decline continued on April 29 and again on April 30, taking 24K to Dh547.25 and 22K to Dh506.75.
That means 24K gold has fallen Dh21.75 in just over a week from April 22, and Dh34.75 from April 19, when it stood at Dh582.25. For 22K buyers, the drop from Dh539 on April 19 to Dh506.75 on Thursday represents a decline of Dh32.25 per gram.
Buyers get some relief
The pullback could improve demand at jewellery stores, especially from buyers who had been waiting for prices to move below recent highs. In Dubai, even a Dh10 to Dh20 per gram fall can make a meaningful difference for families buying larger pieces or shoppers purchasing ahead of weddings and travel.
A 20-gram 22K jewellery purchase would cost about Dh645 less before making charges compared with April 19 rates. Compared with the April 17 peak, the saving would be around Dh755 on the same quantity, excluding retailer charges and VAT.
The latest decline comes after international bullion stemmed a three-day fall following the US Federal Reserve’s decision to keep interest rates steady. Spot gold was steady around $4,540 after losing 3.4% over the previous three sessions.
Fed split clouds gold outlook
Treasury yields rose after the decision, with two-year yields posting their biggest increase on a Fed decision day since 2022. Higher yields usually weigh on gold because bullion does not generate interest income.
Gold is heading for a second monthly decline in April, with the Iran war now in its third month and energy markets still under stress. Bullion has fallen about 13% since the war began in late February, even though central bank demand and reserve diversification continue to support the longer-term case for gold.
Oil keeps risk premium alive
World Gold Council data showed central banks added to gold holdings at the fastest pace in more than a year during the first quarter, with lower prices encouraging fresh buying that offset sales by some institutions.
– 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.