Dubai gold prices dip Dh4.5 as global rates tumble below $3,285
Local gold rates mark biggest one-day drop in recent weeks
DUBAI: Gold prices in Dubai opened the week with notable declines, driven by improving global trade sentiment and a firmer US dollar.
This followed a positive conclusion to US-China trade negotiations in Switzerland, which calmed investor nerves and lowered demand for safe-haven assets like gold.
Dubai gold prices
Retail prices in Dubai dropped across the board on Monday. The price of 24-carat gold fell by Dh4.5 to Dh396.25 per gram, while 22-carat gold declined Dh4.25 to Dh367. The 21-carat rate slipped Dh4 to Dh352, and 18-carat gold was down Dh3.5 to Dh301.5. These are among the sharpest one-day falls in recent weeks, encouraging anticipation of further dips among shoppers.
Global market slide
Internationally, spot gold dropped by 1.34% to $3,281.59 per ounce as of 4:06 GMT, with US gold futures also down 1.75% to $3,285.49. The US dollar index gained 0.22%, reaching 100.56, bolstered by signals from US officials that a “deal” had been reached with China to ease the trade deficit.
Trade tensions between the two superpowers had escalated over recent months with tit-for-tat tariffs, but over the weekend, both sides announced “important consensus” to temporarily lower tariffs and continue talks. Analysts believe this detente has sharply reduced demand for gold as a risk hedge.
Investor sentiment shifts
The recent correction follows a brief Friday rally where gold closed 0.6% higher, but that momentum was short-lived.
On the local front, the Dh367 rate for 22K gold is already down from Friday’s Dh371.25. Last week’s daily high of Dh381.75 now seems distant, offering some relief to buyers who have been waiting for gold prices to settle closer to Dh360.
Shopper expectations rise
Retailers in Dubai confirm a rising trend among residents to “buy at every dip”, especially as summer holidays approach. However, price fatigue remains a factor. “Unless the price drops further – possibly under Dh360 – consumer interest may stay lukewarm,” said a leading gold retailer.
Meanwhile, silver prices inched up by 0.22% to $32.77, platinum gained 0.36% to $998.53, and palladium climbed by 0.50% to $980.52. Despite gold’s dip, the broader precious metals market remained mixed, reflecting differing investor priorities amid global economic shifts.
As attention turns to the upcoming release of the US consumer price index on Tuesday, market participants await further clues on the Federal Reserve's monetary policy stance, which could drive the next wave of gold price movements.