Dubai gold slips by Dh0.41 as markets watch US-China talks
Buyers hold off as prices stabilise after Eid
DUBAI gold prices posted a slight decline on Tuesday, in line with global market movements as US-China trade negotiations stretched into a second day.
Investors remained cautious, awaiting further signals from the talks and the upcoming US inflation data, both of which could influence precious metals and currency markets.
In Dubai’s retail market, the 24-carat gold rate fell by Dh0.41 to Dh399.16 per gram. The 22-carat variety followed suit, trading at Dh369.57, while 21-carat gold stood at Dh352.76. The 18-carat option dropped to Dh302.37. This decline comes after a short-lived rise in demand over the Eid weekend.
How are Dubai buyers responding?
Local shoppers have turned cautious following the Eid gold rush, choosing to wait for further price reductions. Retailers report that many are watching for 22-carat rates to dip below Dh369 before committing to purchases.
While demand has cooled, jewellers expect momentum to pick up again with the launch of Dubai Summer Surprises and related promotions.
Are gold loans gaining momentum?
With gold rates holding relatively strong despite daily dips, UAE residents are increasingly using gold-backed loans for short-term financial needs. Borrowers can secure up to 85% of their gold’s value, with interest rates ranging from 9% to 11%. Flexible repayment options include monthly instalments or single bullet payments at maturity.
US-China talks
Spot gold on the global market was down 0.5% at $3,311.16 an ounce early Tuesday, with US gold futures also falling 0.7% to $3,330.90. Ongoing high-level trade discussions between US and Chinese officials are focused on tariff policies and rare earth restrictions, both critical to global economic flows.
Meanwhile, market participants are keeping a close watch on US CPI data due Wednesday, which is expected to shape expectations around the Federal Reserve’s interest rate policies.