The 24K gold price in Dubai increased to Dh524.25 per gram, up from Dh523.50 on Thursday, while 22K gold saw a rise to Dh485.50 from Dh484.75. The action occurred as global gold prices softened following a recent surge that appeared to be losing steam. Investors are capitalising on gains after the recent surge, as the latest US inflation data has tempered expectations for an imminent increase in Federal Reserve interest rates. For shoppers in Dubai, gold continues to hover near recent highs, even as the international market experiences a temporary pause. A modest daily uptick in local prices indicates that consumers continue to incur higher costs relative to previous benchmarks. Rania Gule stated that the current decline in gold should not be interpreted as a complete bearish reversal. “I believe gold, currently trading around $4,317 per ounce, is going through an important phase that should not be interpreted as a full bearish reversal, but rather as a corrective move, profit-taking, and repositioning following the strong rally prices have experienced recently,” she said.

Gule indicated that the recent pullback might ultimately benefit the market by facilitating the clearance of short-term positions and establishing a more balanced foundation for gold to potentially continue its upward trajectory. Gold prices experienced a decline in India on Friday. The 24K rate declined to Rs 152,890 per 10 grams, down from Rs 153,600 on Thursday. The 22K rate experienced a decrease, settling at Rs 140,150 per 10 grams, down from Rs 140,800. The decline occurs as elevated gold prices start to exert pressure on physical demand. Source reported that physical gold discounts in India expanded to their highest level in over two months this week as the rally limited consumption. International gold was priced at $4,356.77 per ounce, reflecting a decrease of $6.42, or 0.15 percent. Source reported that spot gold had decreased by 0.1 percent to $4,344.24 per ounce by 0851, following a decline of 1.3 percent in the prior session. US gold futures for December delivery declined by 0.4 percent, settling at $4,400.40. Analyst Ole Hansen indicated that profit-taking was beginning to occur following the recent gains.

“Gold trades lower for a second day as profit-taking sets in following a strong run of gains, with tame U.S. inflation data and reduced expectations for further rate hikes largely priced in for now,” Hansen said. “Following the breakout last week, gold is now caught in a $4,200 to $4,500 range with the latter being the 200-day moving average, a key signal for medium to longer term investors,” he added. Gold reached its peak level since June 5 on Thursday before experiencing a downward reversal. US producer prices remained stable in July following a revised decline of 0.1 percent in June, while consumer prices experienced minimal growth last month, as reported. Markets currently assign a 33 percent probability to a rate increase in September, a decrease from approximately 44 percent the previous week, as indicated by the CME FedWatch Tool. Lower interest rates typically provide a favourable environment for gold, as the metal itself does not yield interest payments. Gule indicated that the overall outlook continues to be favourable, although she anticipates that the trajectory upward will be inconsistent.

“From a fundamental perspective, I still believe the broader outlook for gold remains positive, although the path higher will not be a straight one,” she said. She highlighted the potential for a weaker dollar, shifting expectations regarding US monetary policy, and sustained central-bank demand as enduring factors bolstering gold. Gule also highlighted a shift in central-bank reserve management, noting that the World Gold Council’s 2026 survey indicated that 74 per cent of participating central banks anticipate a decline in the dollar’s share of global reserves over the next five years, while 89 per cent expect central-bank gold holdings to continue increasing over the next 12 months. “Therefore, I believe that any relatively deep correction could attract buyers who view gold from a long-term perspective,” she said. Oil prices increased following Washington’s threat of an indefinite naval blockade on Iran, reigniting worries regarding supply disruptions.