Dubai gold rate slips Dh5 amid Iran, Israel tensions
Jewellery buyers in UAE eye lower rates before summer travel season
DUBAI gold prices remained on edge Tuesday, reflecting a mix of global economic cues and rising geopolitical tensions.
Investors monitored both international spot rates and local movements, ahead of the US Federal Reserve’s policy announcement.
The price of 24-carat gold in Dubai reached Dh409.0 per gram at 9am, up slightly from Dh408.5 the previous evening but lower than Monday morning’s Dh413. Other popular variants saw similar adjustments: 22K opened at Dh378.75, 21K at Dh363.25, and 18K at Dh311.25 per gram.
While local gold prices dropped by nearly Dh4.5 on Monday, Tuesday’s rates reflected stabilisation. Some jewellery shoppers, particularly those preparing for summer travel, found respite in the small decline.
Global price movements
Internationally, spot gold rose by 0.4%, last trading around $3,396.67 an ounce in early Asian hours after Monday’s dip of over 1%. Currently, it remains above $3,389. US gold futures were steady around $3,416.30, with traders closely watching the Fed meeting.
The shift came as increased tensions in the Middle East – including recent Israel-Iran exchanges – renewed interest in safe-haven assets like gold. Eastern Europe’s ongoing instability also contributed to the elevated global risk sentiment.
Eyes on the Fed
All attention now turns to the US Federal Reserve’s rate decision expected Wednesday. While the Fed is widely anticipated to maintain rates, market focus will be on Chair Jerome Powell’s outlook for potential rate cuts later in the year. Traders have priced in at least two cuts by December, especially after recent soft inflation data.
In related metals, spot silver edged up 0.3% to $36.41 per ounce, platinum rose 0.6% to $1,251.20, and palladium gained 0.2% to $1,031.68.