Gold prices lost most of Thursday’s gains on Friday morning, as precious metals came under pressure globally amid concerns about higher inflation driven by rising oil prices.
The price of 24K gold fell Dh9.5 per gram at the market open on Friday, trading at Dh487.5 per gram, down from Dh497 at Thursday’s market close. The yellow metal had gained more than Dh11 per gram on Thursday morning.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Similarly, 22K, 21K and 18K gold prices fell to Dh451.5, Dh432.75 and Dh371 per gram, respectively. The most affordable variant, 14K, slipped to Dh289.25 per gram.
Globally, gold fell 1.35 per cent to $4,048 an ounce, while silver lost 1.4 per cent to $51.61.
The sharp price fluctuations come ahead of the Indian festivals of Dhanteras, which falls on Friday, November 6, and Diwali, which will be celebrated on Sunday, November 8.
Beyond festive purchases, global demand continues to be supported by strong central bank accumulation, reflecting sustained interest in gold as a safe-haven asset and portfolio diversifier. Short-term volatility may persist, but structural demand drivers, including central bank buying, underpin the broader investment case for the precious metal.
“Gold continues to hold a distinctive place in the UAE, particularly during Dhanteras and Diwali, when it carries both cultural and financial significance. But the investment conversation around it is gradually evolving. Beyond its traditional association with prosperity, investors are increasingly looking at gold through the lens of portfolio diversification, global economic developments and market opportunities.
“However, not all forms of gold exposure serve the same purpose. Physical gold, ETFs and CFDs differ in their structures, risks and intended uses. For investors, understanding these distinctions is important, particularly in a market where global developments can influence gold prices significantly,” said Vijay Valecha, CIO at Century Financial.
