Dubai gold rates fall by Dh1.75 as global prices lose momentum
Silver slips as platinum and palladium also retreat
DUBAI – Dubai gold rates edged lower on Tuesday, with all three key retail categories recording declines compared with Monday.
The Dubai Jewellery Group’s suggested retail prices showed 24K gold at Dh523.25 per gram, down from Dh525.00 a gram on Monday. The softer local prices came as global bullion struggled for momentum amid expectations that US interest rates could remain higher for longer.
Dubai’s 22K gold rate stood at Dh484.75 per gram on Tuesday, compared with Dh486.00 on Monday, marking a decline of Dh1.25. The 18K rate also eased, falling to Dh398.25 from Dh399.50, a drop of Dh1.25 per gram.
Global markets
The movement followed a subdued session in international markets, where investors remained focused on the US Federal Reserve’s interest-rate outlook and comments from policymakers for clues about the direction of monetary policy.
Spot gold was little changed at $4,342.41 an ounce by 0454 GMT on Tuesday, while US gold futures slipped 0.1% to $4,379.30. Gold has traditionally attracted demand as a hedge against inflation and geopolitical risks, although higher interest rates can reduce its appeal relative to yield-bearing assets.
The Federal Reserve raised its policy rate by 25 basis points last week and indicated that further increases could be needed in the coming months. St Louis Fed President Alberto Musalem said additional rate hikes may be required to bring inflation down, adding to expectations of a higher-for-longer interest-rate environment.
Investors are also watching comments from other Fed officials this week, particularly for indications about whether another increase could come in October. With the US economic calendar relatively light, attention has also turned to crude oil prices and their potential impact on inflation expectations.
Oil prices rose for the first time in five sessions as markets monitored possible US-Iran discussions at the United Nations General Assembly. Developments involving Iran and the wider Middle East remain relevant to energy markets, while tensions around the Strait of Hormuz continue to be closely watched because of the waterway’s importance to global oil shipments.
Other precious metals
Other precious metals also moved lower. Spot silver declined 0.1% to $65.99 an ounce, while platinum fell 0.6% to $1,786.43. Palladium was down 0.4% at $1,296.40.