Gulf Market Moves: Commodities split as gold, silver and diamonds take different paths

According to Commercial Bank of Dubai’s recent market analysis, gold and silver are diverging as commodities enter a more selective phase. At the same time, diamonds continue to show an uneven recovery across segments. The year’s second quarter has begun with precious commodities entering a more selective phase after the extreme volatility seen earlier in the year.

Gold continues to draw support from geopolitical uncertainty (mainly crude price movements) and reserve diversification, silver is responding to industrial and speculative demand, while diamonds are navigating uneven recovery across inventory and ownership structures.

Gold and silver ratio widens:

The recent divergence reflects structural differences between the two metals. Gold continues to behave primarily as a monetary asset supported by reserve diversification, central-bank buying and geopolitical uncertainty. Meanwhile, Silver has become increasingly tied to industrial production, green-energy applications, electronics demand and tighter mining supply conditions, thereby reflecting commodity characteristics to a monetary metal.

Diamonds on uneven recovery:

The diamond market has also shown divergence across pricing and demand segments. Polished diamond prices rose 11.6 per cent year-on-year during the first quarter of 2026, indicating a gradual recovery in downstream demand. Rough diamond prices, however, declined 27 per cent due to weaker immediate buying interest and continued caution across manufacturing and trading segments.

The second quarter of 2026 suggests that gold, silver and diamonds are responding to separate drivers rather than moving through a single commodity cycle. Gold is linked to reserve diversification and geopolitical uncertainty, the analysis showed. Silver continues to balance safe-haven demand with industrial consumption and supply constraints. Diamonds are adjusting to tighter inventories, selective luxury demand and a changing ownership landscape across the global supply chain.