Gold rates dip in Dubai as tensions ease following Qatar base strike
24-carat gold hits Dh404 as investors move away from safe assets
DUBAI: Gold prices in Dubai fell sharply on Tuesday, with 24-carat gold dipping to Dh404.00 per gram – its lowest in nearly two weeks – after a de-escalation in Middle East tensions following recent strikes on a US base in Qatar and a surprise ceasefire announcement by former US President Donald Trump.
The drop in prices came as global markets responded positively to news that Iran and Israel had agreed to a truce. The easing conflict prompted investors to reduce exposure to traditional safe-haven assets like gold.
Dubai gold prices
In the local market, 22-carat gold fell to Dh374.25, while 21-carat and 18-carat variants declined to Dh358.75 and Dh307.50 respectively. On Monday, gold had already shown signs of retreat, with 24-carat trading at Dh405.76.
Iran-Israel 'ceasefire'
The regional instability had intensified earlier this week after missile launches from Iran followed US airstrikes on Iranian nuclear facilities. However, by Tuesday morning, global markets stabilised after Trump declared a “complete and total ceasefire” was now in effect.
Spot gold fell 0.5 percent to $3,351.47 an ounce, while US gold futures dropped 0.9 percent to $3,365.30. This marks a reversal from gold’s recent upward momentum, which had been fuelled by fears of wider conflict across the Middle East.
Other precious metals
Silver dipped slightly by 0.1 percent to $36.10 per ounce, platinum dropped 0.2 percent to $1,292.39, and palladium slipped 0.4 percent to $1,073.05.
Meanwhile, the dollar remains in focus as investors await US Fed Chair Jerome Powell’s testimony later today. Analysts expect limited near-term rate cuts, which could influence gold’s direction in the coming weeks. Gold traditionally performs better when interest rates are low and the dollar weakens.