Dubai gold prices drop Dh9.55 as global rates hit one-month low
Bullion hit with pressure as trade tensions ease globally
DUBAI: Gold prices in Dubai saw a sharp decline on Thursday, with the metal shedding nearly Dh10 per gram in just 24 hours.
The slide mirrored a global dip in bullion prices, driven by easing geopolitical tensions and anticipation around key US economic data.
Markets are now eyeing the US Producer Price Index (PPI), due at 12:30 GMT, which could offer fresh insights into the Federal Reserve’s interest rate path.
Dubai gold prices
According to the Dubai Jewellery Group, 24-carat gold dropped Dh9.55 to Dh378.5 per gram from Dh388.25 on Wednesday morning. Other popular variants also recorded steep declines: 22-carat fell Dh9.25 to Dh350.5, 21-carat dipped Dh8.75 to Dh336.5, while 18-carat saw a Dh8.5 reduction to Dh288 per gram.
Globally, spot gold slumped 1.5% to $3,193.34 per ounce, hitting its lowest level since April 10. The pressure came as US and China reached an agreement to cut tariffs and implement a 90-day pause in their ongoing trade dispute, reducing the metal’s appeal as a safe-haven asset.
Trade truce impact
President Donald Trump hinted at potential deals with India, Japan, and South Korea, further boosting risk appetite and prompting investors to shift funds away from gold. Despite the short-term relief, uncertainty remains about what will happen once the 90-day trade truce expires.
Gold, which reached a record high of $3,500.05 last month, remains up 21.3% for the year. However, expectations of delayed interest rate cuts – now anticipated from October instead of July – have tempered bullish momentum.
Eyes on inflation
As the US Federal Reserve holds rates steady, attention now turns to Chair Jerome Powell's speech later today and recent comments from Vice Chair Philip Jefferson, who cautioned that lingering tariff threats could derail inflation progress. The PPI reading could influence whether the Fed adjusts its monetary stance in the coming months.
Meanwhile, silver dipped 1.14% to $31.84 per ounce, platinum rose 0.50% to $980.88, and palladium edged down 0.22% to $948.82.