Dubai gold drops Dh0.75 per gram as dollar firms worldwide
Silver steady while platinum and palladium register fresh declines
DUBAI – Dubai gold prices eased slightly on Monday after touching a near two-week high, mirroring global market trends.
In Dubai, 24-carat gold slipped by Dh0.75 per gram to Dh405.50. Prices for 22K settled at Dh375.50, 21K at Dh360.25, and 18K at Dh308.75.
Despite the modest retreat, rates remain substantially higher on a yearly basis, showing a 34 percent increase compared with the same period last year. The continued appeal of gold as a safe-haven asset comes against the backdrop of inflation pressures and mounting geopolitical tensions.
Global bullion slide
Globally, gold prices declined 0.23 per cent to $3,365.41 per troy ounce. A stronger dollar weighed on demand by making the metal more expensive for holders of other currencies. Spot silver held steady at $38.81 per ounce, while platinum slipped 0.4 per cent to $1,355.47 and palladium fell 0.8 per cent to $1,116.82.
Market participants are closely watching economic data and central bank moves. The preliminary US GDP reading for the second quarter is expected later this week, projected to show a 3.0 per cent annualised growth rate. A stronger outcome could further bolster the dollar, applying downward pressure on gold.
Rate cut signals
US Federal Reserve Chair Jerome Powell signalled last week that a potential rate cut could be considered in September. Such a move, if confirmed, would typically support bullion as lower interest rates reduce the opportunity cost of holding non-yielding assets like gold.
At the same time, geopolitical risks remain elevated. Ukrainian President Volodymyr Zelenskyy reaffirmed on his nation’s independence day that the country would continue to fight against Russia. His remarks came after Moscow accused Kyiv of drone strikes on energy facilities, including a fire incident at a nuclear power plant in the Kursk region.
Investors are also monitoring developments on US tariffs and trade negotiations, alongside political events including Donald Trump’s ongoing campaign efforts ahead of the 2024 elections, all of which could influence the outlook for safe-haven demand.