Dubai gold slides sharply as 24K drops Dh15.25 in one day
Silver dips as precious metals face pressure from stronger dollar
DUBAI – Dubai gold rates moved lower on Wednesday, with all major jewellery categories recording sizeable declines from the previous session.
The latest suggested retail jewellery prices from the Dubai Jewellery Group showed 24K gold at Dh518.25 per gram, while 22K stood at Dh480 and 18K at Dh394.50. The fresh decline came as international gold prices extended their retreat amid a stronger US dollar, rising Treasury yields and renewed concerns over inflation and interest rates.
The latest Dubai prices marked a significant move from Tuesday, when 24K gold was priced at Dh533.50 per gram. The 24K rate therefore fell Dh15.25 in one session, while 22K dropped Dh14 from Dh494 and 18K declined Dh11.50 from Dh406.
Gold had already edged higher between Monday and Tuesday, with 24K moving from Dh533 on August 31 to Dh533.50 on September 1. Over the same period, 22K increased from Dh493.75 to Dh494, while 18K rose from Dh405.75 to Dh406. The Wednesday decline has therefore erased those modest gains and pushed Dubai's benchmark rates noticeably lower.
Global gold
Internationally, spot gold fell 0.6 percent to $4,304.01 per ounce by 0017 GMT on Wednesday, reaching its lowest level since August 7 and heading towards a fourth consecutive session of losses. US gold futures for December delivery fell 1 percent to $4,350.80. Gold also remained below its 200-day moving average, a closely watched technical level.
The pressure on bullion intensified as the US dollar held firm and Treasury yields advanced. A stronger dollar makes gold priced in the greenback more expensive for buyers using other currencies, while higher interest rates can reduce the appeal of gold because it does not provide a yield. Traders were pricing in a 67 percent chance of a Federal Reserve rate hike at its September meeting, while markets were also awaiting US employment data for further clues on monetary policy.
Iran tensions
The latest market moves came after the United States launched fresh strikes against Iranian targets, followed by Iranian retaliation, marking a serious escalation in the conflict. President Donald Trump has warned of a stronger response if Iran retaliates, adding to uncertainty around the conflict and its impact on regional energy supplies.
Oil prices climbed for a third consecutive session as investors assessed the risk of disruptions around the Strait of Hormuz, a crucial route for global energy shipments. Brent crude rose to $95.40 a barrel on Wednesday, while US West Texas Intermediate crude reached $90.66. Shipping traffic through the strait also remained below its recent average, adding to concerns over the security of oil movements.
Other precious metals
The weakness extended across other precious metals. Spot silver fell 1 percent to $63.60 per ounce, while platinum slipped 1 percent to $1,722.23. Palladium declined 1.4 percent to $1,292.21.