As of Tuesday morning, 24-karat gold in Dubai traded at Dh481.25 ($131) per gram, marking a sharp post-Diwali decline/ Image:AP
Gold prices in Dubai continued their slide on Tuesday, holding below the Dh500 ($136) mark per gram amid weakness in international bullion markets. As of 7 a.m., 24-karat gold was priced at Dh481.25 ($130.00) per gram, while 22-karat traded at Dh445.50 ($120.29) per gram.
| UAE Gold Rates (AED/g) | Morning (28 oct 2025) | Yesterday (27 Oct 2025) |
|---|---|---|
| 24K | Dh479.00 ($129.33) | Dh481.25 ($130.00) |
| 22K | Dh443.50 ($119.75) | Dh445.50 ($120.29) |
| 21K | Dh425.25 ($114.82) | Dh427.25 ($115.36) |
| 18K | Dh364.25 ($98.35) | Dh366.25 ($98.91) |
Global market reaction
The decline mirrors the sharp global sell-off seen Monday when gold tumbled below the $4,000 per ounce mark for the first time in weeks, a drop of over 3.2%. Although the metal recovered 0.9% in early Tuesday trading, sentiment remained fragile as traders digested progress in US–China trade talks, which reduced appetite for safe-haven assets. Just a week earlier, on October 21, gold had touched a record Dh525.25 ($141.83) per gram before suffering its steepest single-day fall in more than ten years. Buyers who invested during Diwali’s price peak saw the value of their holdings drop swiftly as global optimism dampened demand for gold.Global crises, such as the Middle East conflict and the war in Ukraine, have stoked demand for bullion, while political turmoil in France and Japan added to the flight to gold. Analysts attribute the slide to renewed hope in trade stability. “With the US–China dispute showing signs of resolution, markets have shifted toward riskier assets, pulling investors away from gold,” said one Dubai-based commodities expert.
Eyes on the federal reserve
Attention now turns to the US Federal Reserve, which concludes its policy meeting Wednesday. Markets widely expect a 25-basis-point rate cut, the second in a row, aimed at cushioning slowing growth and inflationary pressure. Adding to the intrigue, Treasury Secretary Scott Bessent confirmed that five contenders are being vetted to replace Jerome Powell when his term expires in May 2026, including Christopher Waller, Michelle Bowman, Kevin Warsh, Kevin Hassett, and Rick Rieder of BlackRock.
Outlook for gold investors
With gold consolidating after months of record-breaking gains, analysts warn that volatility may persist until there’s clearer direction on US monetary policy and global trade momentum. For now, traders are watching whether the metal can hold above the Dh480 ($130) level, considered a key short-term support.Silver, meanwhile, mirrored gold’s trajectory, easing from record highs reached earlier in October, when investors flocked to precious metals amid geopolitical and economic uncertainty. Go to Source
