Dubai gold under pressure as US-Iran tensions lift oil and dollar
Silver extends losses alongside broader precious metals market
DUBAI – Dubai's gold market started the week on a weaker note as jewellery prices edged lower in line with a decline in international bullion.
The latest rates issued by the Dubai Jewellery Group reflected softer prices across key gold categories, while global markets reacted to renewed conflict in the Middle East, higher oil prices and a stronger US dollar.
Investors are also closely watching upcoming US inflation data and Federal Reserve signals that could shape the outlook for interest rates.
Dubai gold prices
According to the Dubai Jewellery Group's suggested retail jewellery prices for today, 24K gold was priced at Dh488.75 per gram, 22K at Dh452.50 per gram and 18K at Dh372.00 per gram.
Dubai's retail gold prices are updated daily in line with international bullion movements and currency fluctuations, making the emirate one of the world's most closely watched jewellery markets. Shoppers and investors typically monitor these changes as geopolitical events and economic data continue to influence demand and pricing.
Global gold
Gold prices fell by more than 1 percent in international trading on Monday as fears surrounding the Strait of Hormuz fuelled a sharp rise in oil prices, increasing concerns that inflationary pressures could remain elevated.
Spot gold slipped 1.5 percent to $4,060.36 per ounce, while US gold futures for August delivery declined 1.1 percent to $4,068.30 per ounce.
The latest market moves followed heavy missile and drone exchanges between US and Iranian forces, with Tehran targeting US facilities across Gulf states and saying it had again closed the Strait of Hormuz. The developments sent oil prices about 4 percent higher, boosted the US dollar and Treasury yields, and weighed on Asian equity markets.
Attention is now turning to a busy week of US economic releases, including June consumer and producer inflation data and retail sales figures. Investors are also awaiting testimony from Federal Reserve Chair Kevin Warsh and remarks from other policymakers for fresh clues on the direction of US monetary policy.
Traders are currently assigning a 72 percent probability to a US Federal Reserve interest rate hike in September, compared with around 63 percent a week ago, reflecting growing expectations that policymakers may need to respond to persistent inflation risks.
Silver slips
The decline was not limited to gold, with the broader precious metals market also remaining under pressure.
Spot silver dropped 2.6 percent to $58.29 per ounce. Platinum fell 1.6 percent to $1,601.92, while palladium declined 2 percent to $1,251.42 per ounce, as investors continued to adjust positions amid higher energy prices, a firmer dollar and heightened uncertainty surrounding developments in the Gulf.