Dubai gold drops Dh8 overnight as global rates slide to $4,010

Silver, platinum and palladium also weaken in global trade

Dubai gold
Caption: Dubai gold prices fell Dh7 to Dh8 across all categories today, tracking global declines amid dollar strength and reduced Fed rate-cut expectations.
Source: File photo


DUBAIDubai gold prices recorded notable declines on Tuesday, reflecting both local demand trends and downward movements in the global bullion market.

According to Dubai Jewellery Group, 24K gold dropped to Dh483.50 per gram today, down from Dh491.50 on Monday. Similarly, 22K slid to Dh447.50 from Dh455, 21K to Dh429.25 from Dh436.25, and 18K to Dh368 from Dh374.

Global gold trends

International spot gold slipped 0.9% to $4,010 per ounce by 0444 GMT, posting its fourth consecutive daily loss. US gold futures for December delivery also fell 1.6% to $4,009.20 per ounce. The drop was largely driven by a firmer dollar, making bullion more expensive for holders of other currencies. Reduced expectations of a US interest rate cut in December further weighed on sentiment.

Market focus has shifted to US non-farm payrolls data due on Thursday, which is expected to provide insight into the health of the world’s largest economy. Investor expectations for a Fed rate cut next month have dropped to 42%, from nearly full certainty after the September decision. The Federal Reserve’s recent signals to “proceed slowly” with further cuts have further trimmed appetite for non-yielding assets such as gold.

Other precious metals

Silver extended losses, falling 1.2% to $49.58 per ounce, while platinum slipped 1% to $1,517.73. Palladium also registered a decline of 1.5% to $1,372.05.

Analysts indicate that despite near-term pressure, long-term structural factors such as central bank buying, de-dollarisation, geopolitical tensions and global debt concerns may support precious metals.