Dubai gold retreats with 24K at Dh538.50 after two-day high
Precious metals weaken amid oil surge and market caution
DUBAI – Dubai’s gold market opened lower on Wednesday, offering some relief to jewellery buyers after prices hovered near record levels earlier in the week.
The decline follows a pullback in global bullion prices as investors assessed renewed tensions in the Middle East, stronger oil prices and upcoming US economic data.
Rates across all major gold categories tracked lower compared with Tuesday, while remaining close to historically elevated levels.
Dubai gold rates
According to the Dubai Jewellery Group’s suggested retail rates, 24K gold was priced at Dh538.50 per gram on Wednesday. The rate was down Dh5.75 from Tuesday’s Dh544.25 and Dh5.50 lower than Monday’s Dh544.00.
The 22K rate stood at Dh498.50 per gram, down from Dh504.00 on Tuesday and Dh503.75 on Monday. Meanwhile, 21K gold fell to Dh478.00 from Dh483.25 a day earlier and Dh483.00 on Monday.
For lower-purity categories, 18K gold was priced at Dh409.75 per gram, compared with Dh414.25 on Tuesday and Dh414.00 on Monday. The 14K rate eased to Dh319.50 from Dh323.00 on both previous trading days.
Global market
Internationally, gold prices softened after gaining more than 1 percent in the previous session. Spot gold slipped 0.3 percent to $4,471.38 per ounce, while US gold futures for August delivery fell 0.5 percent to $4,499.30 per ounce.
Market attention remained firmly on developments in the Gulf. Hostilities escalated after the US military said Iranian missile attacks targeting Bahrain, Kuwait and other regional locations were either intercepted or failed. At the same time, diplomatic efforts between Washington and Tehran showed little progress.
Investors also continued to monitor comments from US officials regarding Iran, sanctions policy and the Strait of Hormuz, a critical route for global energy supplies. The geopolitical uncertainty helped push oil prices more than 1 per cent higher, adding to concerns about inflationary pressures.
The outlook for US interest rates also remained in focus. Cleveland Federal Reserve President Beth Hammack indicated that the central bank may need to raise rates if inflation pressures continue to build. Traders are awaiting US non-farm payrolls data and other employment indicators for clues on the Federal Reserve’s next policy move.
Other precious metals
Among other precious metals, spot silver declined 0.4 percent to $74.82 per ounce. Platinum fell 0.5 percent to $1,927.25, while palladium held steady at $1,369.64 per ounce.