Dubai: Following a sharp drop in gold prices after they hit record highs, long queues of sellers have formed at Dubai’s Gold Souk as residents rush to offload their jewelry.
According to a report by Khaleej Times, many UAE citizens and investors have begun selling their gold and silver items in large numbers.
The sudden decline in prices — after reaching all-time peaks — has prompted people to cash in on their holdings.
Numerous individuals are using the proceeds to pay off debts or to purchase property, taking advantage of the favorable market conditions created by the price correction.
Global gold prices experienced an extraordinary bull run throughout 2025, surging dramatically by around 55-65% over the year to set numerous all-time highs, with the metal climbing well above $4,000 per ounce for the first time and establishing dozens of record peaks amid strong demand from central banks, ETFs, investors, geopolitical uncertainties, tariff concerns, and a weakening US dollar.
This momentum carried into early 2026, pushing prices to fresh peaks near $5,600 per ounce in January before encountering sharp volatility, including a significant correction and steep two-day decline that saw drops of up to 20% or more from those highs, driven by factors such as shifts in Federal Reserve expectations following key nominations and broader market dynamics.
However, the precious metal quickly rebounded with strong daily gains in early February 2026, trading around $4,900-$4,920 per ounce as of February 3, reflecting ongoing bullish sentiment from analysts who anticipate continued upward pressure toward $5,000 or higher by year-end, supported by persistent safe-haven appeal, central bank buying, and structural demand trends despite intermittent pullbacks.
