Dubai gold drops up to Dh4.25 per gram as global prices recover
Silver edges higher despite cautious precious metals trade
DUBAI – Dubai's gold market opened lower on Tuesday, offering buyers some relief after prices eased across all major jewellery categories.
The decline followed a sharp fall in international bullion prices during the previous session, while investors shifted their focus to crucial US inflation figures due later in the day.
Global markets also continued to monitor escalating tensions between the United States and Iran, developments around shipping through the Strait of Hormuz, and rising oil prices.
Dubai gold rates
According to the Dubai Jewellery Group, the suggested retail price of 24K gold dropped to Dh484.50 per gram on Tuesday, down Dh4.25 from Dh488.75 on Monday. 22K gold fell by Dh3.75 to Dh448.75 per gram, compared with Dh452.50 a day earlier.
Meanwhile, 18K gold declined to Dh368.75 per gram, a decrease of Dh3.25 from Monday's Dh372.00 per gram. The latest reductions follow recent volatility in the precious metals market, with Dubai prices continuing to mirror movements in international gold trading.
Global markets
Internationally, spot gold recovered after touching its lowest level in two weeks earlier in the session. Spot gold was trading at $4,021.62 per ounce, up 0.5 percent, while US gold futures for August delivery gained 0.6 percent to $4,028 per ounce.
The rebound came after gold tumbled about 3 percent on Monday, marking its biggest single-day percentage decline in more than a month. Investors remained cautious ahead of the release of US Consumer Price Index data, which could provide fresh signals on inflation and the Federal Reserve's next interest rate decision.
Market sentiment also remained influenced by geopolitical developments after US President Donald Trump reinstated a blockade targeting Iranian shipping. The renewed tensions added to concerns over maritime trade through the Strait of Hormuz and pushed oil prices to their highest level in about one month.
Higher oil prices have fuelled inflation concerns, while expectations of tighter US monetary policy have also strengthened. Markets have increased their expectations of a September US interest rate hike following recent comments from Federal Reserve officials indicating that further action could be needed if inflation remains above the central bank's 2 percent target.
Other precious metals
Other precious metals showed mixed performance during Tuesday's session. Spot silver edged 0.1 percent higher to $57.70 per ounce, recovering after earlier touching a two-week low.
Platinum slipped 0.1 percent to $1,603.72 per ounce, while palladium climbed 1.4 percent to $1,264.61 per ounce as investors continued to assess inflation risks, interest rate expectations and geopolitical developments across global commodity markets.