Gold prices in the UAE declined on June 30. International gold prices also moved lower, with spot gold falling below AED 14,690 ($4,000) per ounce. The latest fall pushed the precious metal toward its steepest monthly decline since late 2008, even as market analysts stated that the broader outlook for bullion continues to be positive.
At the opening of the UAE market, the price of 24K gold dropped to AED 480.25 per gram from AED 485.75 at the previous close. Other retail rates also moved lower. The 22K variant traded at AED 444.75 per gram, while 21K and 18K gold stood at AED 426.50 and AED 365.50, respectively. The 14K variant opened at AED 285 per gram.
In the international market, spot gold traded at AED 14,643($3,987) per ounce as of 9:10 am UAE time, moving below the key AED 14,690 ($4,000) mark. Silver also weakened, falling around 1.1% to AED 211.25 ($57.53) per ounce.
The latest correction comes after gold touched record highs earlier this year. The decline has placed the metal on track for its biggest monthly drop since October 2008. Market observers, though, view the current movement as a correction within a longer-term upward trend rather than a shift in market direction.
Awad Issawi, MENA Regional Spokesperson and Market Analyst at iFOREX, confirmed that the factors that supported gold's rally earlier this year are still active. He pointed to continued buying by central banks, rising fiscal deficits across major economies, geopolitical uncertainty and the gradual diversification away from the US dollar as key themes supporting bullion over the longer term.
Issawi reported that the broader trend is likely to stay favourable as long as gold holds above the AED 13,588.25 ($3,700) -AED 13,955.50 ($3,800) support range. A sustained move below that level could push prices toward AED 12,486.50 ($3,400). On the upside, he said gold could first target AED 15,790.75 ($4,300) before attempting to revisit the record zone around AED 16,896.50 ($4,600) - AED 17,263.75 ($4,700) over a longer period.
The recent correction may attract attention from retail investors, especially in gold-focused markets such as the UAE. Analysts, however, suggest viewing the decline through a long-term investment perspective rather than reacting to short-term price swings.
Issawi noted that previous pullbacks during long-term bull markets often created opportunities for accumulation instead of signalling a broad market exit. He added that investors should watch the direction of the US dollar, inflation trends, Federal Reserve policy expectations, central bank buying activity and continued industrial and AI-driven demand for silver while assessing the outlook for precious metals.
The latest price movement reflects short-term pressure in global bullion markets, while the longer-term outlook continues to depend on macroeconomic trends and investor demand.
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