Dubai gold rates drop Dh3 as 24K retreats to Dh518.75
Silver edges higher as investors assess rates, oil and geopolitical risks
DUBAI – Dubai gold rates edged lower on Tuesday, with all three key retail jewellery prices falling from Monday as global bullion markets remained under pressure from a stronger US dollar, rising oil prices and expectations of tighter monetary policy.
The Dubai Jewellery Group’s suggested retail rates showed 24K gold at Dh518.75 per gram, down from Dh521.75 on Monday.
The latest move comes as international investors await the US Federal Reserve’s policy decision and assess escalating tensions involving Iran and regional oil supplies.
Dubai gold rates
According to the Dubai Jewellery Group, 22K gold was priced at Dh480.50 per gram on Tuesday, compared with Dh483.25 on Monday. The 18K rate stood at Dh394.75, down from Dh397.00 a day earlier.
That puts the daily decline at Dh3 for 24K and 22K gold, while 18K slipped by Dh2.25 per gram. The softer local prices mirror weakness in international bullion markets after gold touched a more than one-month low during Monday’s session.
Spot gold was little changed at around $4,300.96 an ounce early Tuesday after falling to its lowest level since August 7 on Monday. US gold futures were down 0.3% at $4,341.10.
Global markets
Markets are heavily focused on the Federal Reserve’s policy decision due on Wednesday, with expectations centred on a 25-basis-point rate increase that would take the benchmark range to 3.75%-4.00%. Traders are also watching how Fed Chairman Kevin Warsh signals the path for future monetary policy.
The prospect of higher US interest rates has weighed on gold because rising yields increase the opportunity cost of holding non-yielding bullion. A firmer dollar has added another layer of pressure, making dollar-priced gold more expensive for buyers using other currencies.
The dollar index was around 99.55 on Tuesday, close to a two-week high, as higher oil prices and US Treasury yields strengthened expectations for tighter monetary policy. The 10-year Treasury yield had crossed 5% on Monday for the first time since October 2023.
Iran tensions
Geopolitical developments are meanwhile keeping energy markets volatile. Iran-aligned Houthi forces launched fresh attacks on Saudi Arabia, while Gulf states postponed planned talks with Iran over arrangements involving the Strait of Hormuz.
The waterway, which handled about 20% of global crude and liquefied natural gas supplies before the conflict, has seen shipping activity fall sharply. Kpler data showed only four commodity vessel transits through the strait on Monday, compared with 10 the previous day and a pre-war average of about 125 vessels a day.
Oil prices climbed above $100 a barrel as attacks on Saudi infrastructure raised concerns about further supply disruptions. Brent crude was around $106.93 a barrel early Tuesday, while US West Texas Intermediate stood at $102.65.
US President Donald Trump has so far resisted Saudi requests for direct American military intervention against the Houthis, while Washington has continued providing intelligence and targeting support.
Other precious metals
Other precious metals also remained in focus. Spot silver edged 0.1% higher to $63.28 an ounce, while platinum slipped 0.1% to $1,757.46 and palladium declined 0.7% to $1,283.61.
Silver had fallen 1.2% on Monday as the stronger dollar, rising oil prices and expectations of higher interest rates weighed across precious metals.