Will Gold Price in Dubai Decrease in 2024? Not This Month, But….


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The lure of gold has captivated hearts in Dubai for centuries, with its shimmering beauty adorning everything from intricate jewellery to opulent home décor. But for those hoping to sparkle up their lives with a new gold purchase, 2024 might not be the year for gold hunting due to the current Gold Price in Dubai. 

While the “January effect” traditionally sees gold prices rise, experts predict that the Gold Price in Dubai will have an upward trajectory that will continue throughout most of the year, offering little respite for eager buyers.

Gold Price in Dubai

Gold Price in Dubai: Golden Glow, Gloomy Forecast

After two years of decline, gold price in Dubai climbed over 15% in the international market last year, a boon for sellers but a pain point for those yearning to add to their gold collections. While the demand for gold jewellery remains robust, soaring prices can put it out of reach for many buyers, especially as analysts foresee continued price hikes in 2024.

Gold Price in Dubai: January

History paints a glimmer of hope for January buyers, as the “January effect” has statistically seen gold price in Dubai climb an average of 1.8% since 1971. However, Juan Carlos Artigas, Global Head of Research at the World Gold Council, cautions that this doesn’t guarantee a January bonanza every year. With gold hovering at elevated levels, Artigas expects gold price in Dubai to remain high this month.

Postpone Your Bling Blitz?

Dubai-based precious metals analyst Georgina Effel paints a less rosy picture, opining that “any profit-taking or slight pullback in the currently high gold price in Dubai in January are unlikely.” She attributes this to global interest rate hikes and anticipates gold prices to trade higher throughout most of the year. However, Effel offers a ray of hope, suggesting a potential gold price in Dubai correction in the first quarter before March ends. Analysts have revised their 2024 gold price in Dubai targets significantly upwards, with some expecting prices to surpass the current global cost per ounce of $2,040 (Dh7,500).

Gold’s Pricey Perch:

In the UAE, the 24-karat gold price per gram reached Dh247 on Friday, exceeding the previous night’s closing rate of Dh246. Other karats followed suit, with 22-karat, 21-karat, and 18-karat prices inching up as well. Effel predicts prices to climb towards Dh250 per gram in the coming weeks, but historical trends suggest a potential correction afterwards, bringing prices down to around Dh220 per gram in two to three months.

Safe Haven or Shiny Sucker Trap?

Gold has traditionally been considered an inflation hedge, but rising interest rates have dampened its allure for investors seeking safe havens for their investments. While this factor boosts gold prices, it creates a conundrum for buyers facing inflated costs. Effel believes that gold will continue to enjoy investor favor in 2024 due to global economic uncertainty and recession fears, though dramatic price increases beyond record highs are unlikely as interest rates are expected to decline by year-end.

Limited Gleam in 2024:

While 2023 witnessed a sharp price increase of nearly Dh65 per gram, expectations for 2024 are more subdued. Market data suggests that gold prices will likely stabilize after last year’s significant gains, offering limited room for further ascent. Zubair Shakeel, a UAE-based investment manager, views this as positive news for buyers aiming to capitalize on easing inflationary pressures and potential monetary policy shifts later in the year. Investors, however, might find the year’s outlook less glittering.

Gold’s allure remains undeniable in Dubai, but discerning buyers should approach 2024 with cautious optimism. While January might not offer significant price drops, February could potentially bring a welcome reprieve to the gold price in Dubai. Ultimately, timing your gold purchase might be key to navigating the year’s price fluctuations and adding a touch of golden gleam to your life without breaking the bank.

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