Dubai gold prices stay low this weekend — will you see another Diwali-like drop again?

Gold prices in Dubai stayed below Dh500 per gram for 24K this weekend but have risen by Dh6 from last week’s monthly low. But will prices see another significant correction after the recent post-Diwali crash?

Retail prices for 24-karat currently stood at Dh482.25 per gram, up from Dh476.25 on Thursday. The widely popular 22-karat variant climbed to Dh446.50 from Dh441 earlier. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

The move came as traders reacted to interest rate cuts in the US and UAE. Gold prices have stayed steady this week, moving between $3,914 and $4,026 an ounce.

Vijay Valecha, Chief Investment Officer at Dubai-based Century Financial, attributes this to the market just taking a breather after big gains, not showing weakness.

"If prices rise above $4,106, gold could climb to around $4,200, but if they fall below $3,925, they may slip to about $3,850," he added.

The US-China trade truce did not eliminate longer-term concerns about technological and geopolitical rivalry. Bullion rose 2.4% in the previous session, halting a four-day slide.

Talks between Presidents Donald Trump and Xi Jinping signalled a temporary easing of tensions. A one-year pause is seen as stabilising relations while giving each side time to reduce strategic dependence. The shift underscored China’s growing economic weight relative to Trump’s first term, renewing demand for safe-haven assets.

Second weekly loss

Gold also recorded its second weekly loss, down more than 2% this week. Recent price pressure reflects reduced expectations for additional Federal Reserve cuts.