Gold and silver prices saw a sharp correction across the United Arab Emirates this week, triggering panic selling among residents and small investors.
Long queues formed outside jewelry shops as prices dropped swiftly from recent record highs. Jewelers, however, say the sell-off reflects profit-booking rather than financial distress, with investors locking in gains after months of steady rallies.
Market participants insist this is not a sign of fear or liquidity stress. According to traders in the Dubai Gold Souk, many sellers bought gold and silver at significantly lower levels and moved quickly once prices slipped.
“People saw prices falling and decided to book profits before the slide deepened,” jewelers said, adding that such behavior is common after sharp rallies.
Local gold prices dropped by more than Dh100 per gram from last week’s peak, while silver also recorded a sharp decline. The global market trends of the fall period created conditions that resulted in precious metals experiencing price declines due to profit-taking and international market fluctuations.
The analysts said that prices had increased beyond their normal range, which created a need for price correction to occur.
The initial panic selling showed that buyers started to return to the market, according to emerging evidence. The upcoming wedding season and festive period present a buying opportunity for some consumers who view the market correction.
Jewelers report selective buying at lower levels, indicating that underlying demand remains intact.
Experts recommend that investors exercise caution. The short-term market fluctuations will continue; however, both jewelers and analysts maintain that gold and silver market fundamentals show strong performance. The current market sell-off demonstrates two main points, which show that market sentiment can shift rapidly while profit-booking activities drive market movements instead of panic selling.