Dubai gold rates hold at Dh409 as global prices dip 0.5%
24K gold rises by Dh1.5 as global spot prices ease
DUBAI: Gold prices in Dubai maintained their elevated levels on Thursday, with 24-carat gold rising by Dh1.5 to Dh409 per gram.
The 22-carat variant followed suit, climbing Dh1.25 to Dh378.75. Rates for 21-carat and 18-carat gold also moved up, reaching Dh363.25 and Dh311.25 respectively.
This steady increase comes despite a dip in international prices. Global spot gold fell by 0.50% to $3,373.10 an ounce at 4:29 GMT, while US gold futures dropped to $3,391.06. The US dollar index, meanwhile, edged up 0.07% to 98.98, contributing to gold becoming slightly more expensive for holders of other currencies.
As Dubai prepares for the start of Dubai Summer Surprises (DSS) promotions from June 27, gold buyers might be lured back into stores by raffles and small-ticket deals – even with prices staying near record highs.
Middle East tensions
Rising political tensions in the Middle East remain a dominant influence on gold prices. Market analysts are closely watching developments as the United States continues to weigh its role in the ongoing Israel-Iran conflict. On Wednesday, US President Donald Trump refrained from confirming whether the country would engage militarily, while reports of evacuations from Tehran circulated amid air strikes.
Historically, gold tends to benefit from global uncertainty, serving as a safe-haven asset for both individual investors and central banks.
Fed rate decision
On the economic front, the US Federal Reserve held interest rates steady on Wednesday. While policymakers still anticipate a 0.5% rate cut this year, they slowed the projected pace of further easing. Fed Chair Jerome Powell also warned about persistent inflation, citing risks from higher import tariffs.
With current conditions, some market experts now believe that gold could approach the $4,000 mark within the next 12 months.
Precious metals overview
The broader precious metals market also showed mixed movements on Thursday. Spot silver edged up 0.04% to $36.75 per ounce, platinum increased 1.55% to $1,342.78, and palladium gained 0.98%, reaching $1,058.80.