Dubai gold prices were corrected sharply on Friday evening, and retail prices plummeted by nearly Dh15, as the Dh24-karat gold was dragged back below Dh500 following an initial spurt, which indicated the rally could continue into the weekend.
Gold prices had increased earlier in the day up to Dh506 per gram, which is one of the strongest this month. However, in the evening, 24K withdrew to Dh492, indicating a sharp change in the situation, and this was mainly as a result of volatility in the global bullion markets.
The 22-karat type went the same way and dropped to Dh455.50 after reaching Dh468.75 on the day. This was only 24 hours after a slight fall to Dh465.25 on Thursday, and it is indicative of the volatile nature of the trading environment that has characterized November thus far.
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Strong Rally Sees Sudden Pause
The fall is a break in a consistent upward trend that has characterized the gold prices in Dubai throughout November. During the first week of the month, 24K gold remained within the Dh480 to Dh483 range and then increased at a faster pace in the Dh495-Dh506 range during the last five sessions.
This was also reflected in the 22K variant that rose between approximately Dh444 and approximately Dh469 in the middle of this month. The best gains were made in the past four days, showing the robustness of the present gold run-up—until its abrupt turnabout today.
Global Bullion Prices See Steep Drop
The downfall on Friday follows the turbulence quite well in the world bullion markets. The global price of gold dropped by 2.79% to 4,073 an ounce. Gold had risen to several record highs in the year 2025 as investors sought shelter against continued fears of inflation and rising debt levels in major economies, as governments tried to combat the situation. But the longer-term effect of increased world interest rates does put downward pressure on the metal, which does not yield in terms of interest or dividends.
Global gold was, however, still on track to have its best week in a month; although it dropped on Friday, it still increased by an estimated 5 percent and recovered most of the previous session losses. Analysts opine that the metal remains a haven for all special needs, given that the markets have been shaken by the accumulated economic data that is awaiting release by the United States when Washington opens its door after a six-week government shutdown.
Gold’s Record-Breaking Year Continues
Gold has continued to be one of the best assets of 2025, adding almost 60% year-to-date, its best year performance since 1979. A major buyer has been the central bank of various world countries, which have been moving to stock up reserves to cushion against fiscal disturbance and diversify their portfolios. The mood of the investors has also changed, mostly towards a cautious mode, and this has resulted in more funds going towards the gold-backed assets.
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Mixed Signals from the US Fed
A US interest rate cut was announced this week after remarks by senior Federal Reserve officials. Policymakers indicated low urgency to relax borrowing rates, even though the economy was feared to slow.
However, the markets of gold are supported due to future liquidity expectations. Federal Reserve Bank of New York official Roberto Perli observed that the central bank will not take long to start purchasing assets again to restore liquidity in the financial system.
The Fed has already declared that it will cease balance sheet downsizing beginning December 1st, after short-term funding markets became volatile, a move that is widely considered to be pro-gold.