Dubai gold remains below Dh490 as global prices retreat on US-Iran tensions
Silver slips as precious metals track global market moves
DUBAI – Dubai's gold market remained broadly stable on Thursday, offering shoppers little change after recent price swings.
The latest rates from the Dubai Jewellery Group showed 24K gold unchanged from the previous session, while 22K and 18K prices edged lower.
The local market tracked global bullion prices, which came under pressure as renewed conflict in the Middle East and expectations of higher US interest rates weighed on investor sentiment.
Dubai gold rates
According to the Dubai Jewellery Group's suggested retail jewellery prices, 24K gold was priced at Dh486.25 per gram on Thursday. The 22K rate eased to Dh450.25 per gram, down from Dh450.50 on Wednesday, while 18K gold slipped to Dh370.00 from Dh370.25.
Compared with earlier in the week, Thursday's prices remained above Tuesday's levels, when 24K stood at Dh484.50, 22K at Dh448.75 and 18K at Dh368.75. However, they were still below Monday's higher levels of Dh488.75 for 24K, Dh452.50 for 22K and Dh372.00 for 18K.
The latest figures reflect a relatively narrow trading range in Dubai despite heightened volatility in international bullion markets.
Global market
International gold prices declined on Thursday after geopolitical tensions in the Middle East intensified. Spot gold fell 0.9 percent to $4,024.60 per ounce, while US gold futures for August delivery slipped 0.6 percent to $4,029.50.
Markets reacted after the United States launched fresh strikes on Iranian coastal defence and missile sites, with Iran responding by targeting US military facilities in neighbouring countries. The renewed escalation revived concerns over regional stability, including risks surrounding energy supplies and shipping through the Strait of Hormuz.
Oil prices have climbed 11 percent so far this week, raising fears that higher energy costs could reignite inflation. Although recent US consumer and producer price data pointed to easing inflation in June, investors remained focused on whether the conflict could reverse that trend.
The stronger inflation outlook has reinforced expectations that the US Federal Reserve could raise interest rates later this year. Market pricing continued to indicate a 73 percent probability of a December rate hike, while investors awaited further comments from Federal Reserve policymakers for clues on the central bank's next move.
Other precious metals
Other precious metals also traded lower. Spot silver dropped 1.7 percent to $56.78 per ounce, extending losses alongside gold.
Platinum declined 1.3 percent to $1,652.50 per ounce, while palladium fell 1.4 percent to $1,296.29 per ounce, reflecting broader weakness across the precious metals market as investors weighed geopolitical risks, higher oil prices and the prospect of tighter US monetary policy.