Gold prices remained stable in Dubai on Friday morning, with expectations of limited trading fluctuations in the near future, according to data from the Dubai Jewellery Group.

The 24K gold price was recorded at Dh563.5 per gram, reflecting a slight increase of half a dirham per gram. Other variations of gold, including 22K, 21K, 18K, and 14K, were priced at Dh521.75, Dh500.25, Dh428.75, and Dh334.5 per gram, respectively.

Spot gold was trading at $4,676.4 per ounce, marking a 0.51 percent increase, while silver rose by 0.28 percent to $72.99 per ounce.

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Trading activity was subdued due to the Good Friday holiday.

Gold has retreated from its recent peak near the $4,800 mark as it struggled to maintain upward momentum.

“However, the current correction is primarily technical and does not indicate a reversal of the overall trend. Following a significant decline in March, the precious metal has shown a rebound in early April, suggesting that underlying demand remains strong. Recent market activity illustrates a tug-of-war between ongoing pressure from high Treasury yields and a robust US dollar amid continued inflation concerns, contrasted with safe-haven demand driven by prolonged geopolitical risks,” stated Linh Tran, a market analyst at xs.com.

He added that the geopolitical landscape is having a more intricate effect than usual.

“Oil prices have surged above $110 per barrel due to tensions in the Middle East, raising concerns about renewed inflationary pressures rather than merely enhancing traditional safe-haven demand. In fact, gold has occasionally dipped alongside risk assets throughout March, indicating a temporary weakening of its safe-haven role,” Tran noted.

Despite this, gold's significant recovery from a recent low of around $4,100 per ounce shows that selling pressure is subsiding.

“The rebound has also been fueled by dip-buying activity, particularly following a wave of aggressive selling. This suggests the market is transitioning into a rebalancing phase rather than entering a new downtrend.

“Furthermore, major institutions continue to hold a positive medium-term outlook. While they recognize short-term pressures from changing policy expectations, gold is still anticipated to recover after a consolidation phase, supported by demand for portfolio diversification and ongoing macroeconomic risks,” she added.

In the short term, Tran predicts that gold will trade within a broad range as the market weighs the effects of high yields against underlying supportive factors.

“The $4,600 level acts as crucial support, while $4,800 remains a key resistance level that must be surpassed to confirm a continuation of the upward trend. Despite the recent decline from $4,800, the broader bullish structure remains intact, and current dips likely represent a consolidation phase before the uptrend resumes,” she concluded.

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