Dubai gold price slides to Dh387.75
Retail buyers see volatility after wild Dh10 rebound overnight
DUBAI: Gold prices in Dubai dropped on Friday as international rates slumped to their lowest levels in months, dragged down by a stronger dollar and reduced geopolitical risk.
The UAE market reflected the downturn with all gold categories registering declines, prompting fresh uncertainty among retail buyers.
According to local market data, 24-carat gold slipped Dh0.5 to Dh387.75 per gram. The 22-carat rate dipped Dh0.25 to Dh359.25, while 21-carat and 18-carat varieties fell to Dh344.50 and Dh295.25, respectively. These reductions come in the wake of a global slide in bullion prices, with spot gold dropping 0.33% to $3,213.76 as of 5:34 GMT. US gold futures also declined 0.21% to $3,219.77.
Safe-haven pressure
Bullion has declined 3.3% this week, marking its worst weekly performance since November 2024. The sharp fall comes amid easing trade tensions between the United States and China. Earlier this week, both nations agreed to a 90-day pause on tariffs, slashing duties by over 100 percentage points to a baseline 10%. This move boosted investor sentiment and led to a rally in global equities, drawing funds away from safe-haven assets like gold.
In parallel, a ceasefire between India and Pakistan, along with diplomatic efforts surrounding the Russia–Ukraine conflict, has helped cool geopolitical tensions further, eroding demand for gold.
Dollar strength
The US dollar index has climbed 0.4% this week, marking its fourth consecutive weekly gain. A stronger dollar tends to pressure gold prices by making the metal more expensive for non-dollar buyers. Additionally, US economic data added to the bearish sentiment. The producer price index dropped 0.5% in April, while retail sales slowed, reinforcing confidence in the economy and reducing expectations of aggressive Federal Reserve intervention.
Federal Reserve Governor Michael Barr stated that inflation is aligning with the 2% target, supporting projections of a 57 basis point interest rate cut by year-end, likely beginning in September.
Precious metals slump
Other metals followed suit, with silver falling 0.71% to $32.44. Platinum slipped 0.06% to $989.12, and palladium recorded a 1.17% drop to $957.11.