Dubai gold drops Dh27.75 in two days as global prices rebound 1.5pc
Silver surges 3.4% after sharp previous-session fall
DUBAI – Dubai gold prices retreated sharply on Wednesday, reversing part of this week’s rally as global markets swung on renewed geopolitical tensions and currency moves.
Rates released by the Dubai Jewellery Group show 24K gold at Dh621.25 per gram, down from Dh639.75 on Tuesday and Dh649.00 on Monday. The two-day drop of Dh27.75 reflects the international bullion market’s volatility.
For other categories, 22K slipped to Dh575.25 from Dh592.50 on Tuesday and Dh601.00 on Monday. The 21K rate eased to Dh551.75, compared with Dh568.00 and Dh576.25 over the previous two sessions. Meanwhile, 18K gold fell to Dh472.75 from Dh486.75 and Dh493.75, and 14K declined to Dh368.75 from Dh379.75 and Dh385.25 earlier this week.
Global rebound
Internationally, spot gold climbed 1.5% to $5,164.42 per ounce by 0701 GMT on Wednesday, rebounding from a more than one-week low in the prior session. US gold futures for April delivery rose 1% to $5,174.30.
On Tuesday, bullion had fallen more than 4%, its lowest since February 20, pressured by a firmer dollar and fading expectations of imminent rate cuts. The rebound came as an expanding Middle East conflict unsettled wider financial markets, pushing investors back towards traditional safe-haven assets.
The US dollar index strengthened earlier in the week, reflecting demand for liquidity as oil and gas prices surged following disruptions to energy exports from the region. Higher crude prices have added to inflation concerns, complicating the outlook for monetary easing.
Investors are widely expecting the US Federal Reserve to hold interest rates steady at the conclusion of its March 18 meeting, according to market pricing tools.
Dollar dynamics
Despite gold’s rebound on Wednesday, analysts noted that a stronger dollar can temper bullion’s appeal, as the metal becomes more expensive for holders of other currencies. The greenback has regained its safety bid even as equity and bond markets faced heavy selling pressure.
Gold’s performance this week has contrasted with its strong run over the past year, during which prices nearly doubled to record highs. Market participants have attributed recent sharp swings partly to profit-taking and a broader move into cash amid rising volatility.
Silver surge
Other precious metals posted stronger gains. Spot silver advanced 3.4% to $84.86 per ounce after tumbling more than 8% in the previous session. Platinum rose 2.9% to $2,143.45, while palladium gained 2.8% to $1,692.69.
The rally in silver and platinum came as energy prices climbed and geopolitical uncertainty persisted, reinforcing demand across the metals complex. Oil and gas markets have remained elevated amid supply concerns, influencing broader commodity flows.