Dubai gold drops Dh15.75 per gram as global prices hit 11-week low
Precious metals weaken amid geopolitical tensions and oil gains
DUBAI – Dubai’s gold market recorded a sharp decline on Wednesday, offering buyers significantly lower prices after several sessions of elevated rates.
The emirate remains one of the world’s most closely watched retail gold hubs, with rates published daily by the Dubai Jewellery Group serving as a benchmark for residents, tourists and jewellery traders
The latest drop follows weakness in international bullion markets, where gold extended losses for a fourth consecutive session.
Dubai gold rates
According to the Dubai Jewellery Group’s suggested retail jewellery prices on Wednesday, 24K gold stood at Dh506.50 per gram, while 22K was priced at Dh469.00. Rates for 21K and 18K gold were Dh449.75 and Dh385.50 per gram respectively, with 14K gold at Dh300.75 per gram.
The decline was substantial compared with Tuesday’s levels. On Tuesday, 24K gold traded at Dh522.25 per gram, meaning Wednesday’s rate was lower by Dh15.75. The 22K category fell by Dh14.50 from Dh483.50, while 21K dropped by Dh13.75 from Dh463.50. Prices for 18K and 14K gold also eased by Dh11.75 and Dh9.25 per gram respectively.
Compared with Monday, rates were also notably lower. The 24K price was down Dh13.25 from Dh519.75, while 22K, 21K, 18K and 14K gold declined by Dh12.25, Dh11.50, Dh10.00 and Dh7.75 per gram respectively.
Global markets
Internationally, spot gold fell 1.3 percent to $4,206.08 an ounce on Wednesday morning, after touching its lowest level since March 23. US gold futures for August delivery were down 1.4 cent at $4,228 an ounce.
The move came as oil prices climbed following renewed hostilities between the United States and Iran. President Donald Trump said Tehran had shot down a US Apache helicopter in the Strait of Hormuz, prompting US strikes on Iranian targets. Iran’s Revolutionary Guards subsequently announced retaliatory attacks against a US base in Jordan and additional targets across the Gulf region.
The rise in oil prices has heightened concerns about inflation, reinforcing expectations that interest rates could remain elevated for longer. Market participants are also awaiting key US inflation data, including the May Consumer Price Index and Producer Price Index reports, for further signals on Federal Reserve policy. Higher interest rates generally reduce the appeal of non-yielding assets such as gold, while the US dollar has remained a key factor influencing bullion demand.
Other precious metals
Other precious metals also moved lower. Spot silver fell 1.2 percent to $64.59 per ounce, while platinum dropped 3 percent to $1,675.50. Palladium declined 1 percent to $1,209.36 per ounce as broader weakness spread across the metals complex alongside shifting expectations for interest rates and global economic conditions.