Dubai gold prices ease as dollar strengthens, markets eye US data
Global gold steadies near $3,340 per ounce
DUBAI’s gold prices dipped marginally on Wednesday following a sharp jump on Tuesday, which had pushed the 24-carat rate to Dh405.31 per gram.
As of July 16, retail gold prices in Dubai stand at Dh402.50 for 24K, showing a decline of Dh2.81 per gram from the previous session.
The 22K rate is Dh372.50 per gram, down from Dh375.26 a day earlier. Similarly, 21K gold is priced at Dh357.00 (from Dh358.19), while 18K now trades at Dh306.00, slightly lower than Tuesday’s Dh307.02.
Spot price trends
Internationally, spot gold edged 0.4 percent higher to $3,334.12 per ounce in early Asian trading and is currently hovering around $3,339. US gold futures climbed 0.1 percent to $3,340.90, now trading near $3,345.
Tuesday’s rally had brought spot gold closer to $3,350, driven by heightened safe-haven demand amid growing geopolitical tensions and economic uncertainty. US President Donald Trump’s threat to impose 100 percent tariffs on Russia added to global market volatility.
Dollar, yields impact
Despite the geopolitical risks, gold’s gains have been kept in check by the US dollar’s ongoing strength and elevated Treasury yields. The dollar continues to benefit from a rise in the 10-year US bond yield, supported by stronger-than-expected inflation figures for June.
The US Consumer Price Index rose 0.3 percent last month, with the 12-month rate hitting 2.7 percent. The data has prompted a market shift, decreasing expectations of a September interest rate cut from nearly 60 percent to around 52 percent, according to the CME FedWatch Tool.
Eyes on US data
Market focus now turns to the US Producer Price Index, due later Wednesday. Analysts say the figures could influence gold’s short-term trajectory, especially with uncertainty around US tariffs, inflation, and Federal Reserve policy direction.
Meanwhile, silver gained 0.3 percent to $37.82 per ounce, platinum rose 0.2 percent to $1,379.46, and palladium climbed 0.4 percent to $1,210.66.