Gold prices in Dubai slip below Dh400
Global rates waver amid stronger dollar and trade uncertainty
DUBAI: Gold prices in Dubai began the week on a downward trend, with 24-carat gold falling by Dh0.50 to Dh399 per gram on Tuesday.
Similarly, 22-carat dropped to Dh369.5, 21-carat declined to Dh357.00, and 18-carat slipped by Dh0.25 to Dh306.00. The movement comes as global bullion rates hover near $3,330 per ounce, influenced by developments in US trade policy.
Global spot gold edged lower by 0.02 percent to $3,332.45, while US gold futures dropped 0.05 percent to $3,341.37. The fluctuations were largely driven by a firm US dollar, which continues to weigh on the metal’s appeal by making it more expensive for foreign buyers.
Trade talks impact
Markets responded to US President Donald Trump’s announcement that Washington is nearing multiple trade deals, delaying tariff deadlines previously expected to take effect on August 1. The tariff reprieves and ongoing negotiations have eased investor anxieties, pressuring gold as a safe-haven asset.
This policy shift supported the dollar, which in turn pushed gold prices lower. Spot gold fell as much as 0.8 percent to $3,306.85 per ounce on Monday, with futures following suit at $3,315.70. The temporary delay in tariffs reduced immediate concerns over a global trade war, trimming safe-haven demand.
Global buying trends
Meanwhile, central banks remain active buyers in the gold market. Data from the World Gold Council revealed an uptick in purchases during May, with the People’s Bank of China marking its eighth consecutive month of gold accumulation in June. Such trends suggest institutional confidence in the long-term value of the metal, even as short-term fluctuations persist.
Back in Dubai, prices saw a minor rally last Friday, rebounding by Dh1 across all categories – 24-carat reached Dh402.75, while 21-carat and 18-carat climbed to Dh357.50 and Dh306.25 respectively – following earlier losses triggered by strong US jobs data and shifting Fed rate expectations.
However, with Trump’s tariff decisions expected by July 9 and inflationary concerns brewing due to rising US national debt, gold traders continue to monitor global cues. The White House’s next move could tilt the scales yet again.