Dubai gold drops another Dh2.50 amid market cooldown
Dollar weakness limits global gold losses amid trade talks
DUBAI: Gold prices in Dubai dipped on Friday, pulling back from the week’s earlier highs.
As of July 25, 24K gold was priced at Dh405.00 per gram, reflecting a Dh2.50 decline from Thursday’s rate of Dh407.50 and Dh7.25 below the midweek peak of Dh412.25 on Wednesday.
Similarly, 22K gold dropped to Dh375.25 per gram, while 21K settled at Dh359.75 and 18K stood at Dh308.25.
The drop marks the second consecutive day of decline after a three-day rally that had seen gold surge on strong demand and favourable exchange trends.
This week’s gold prices
Gold started the week steady at Dh405.00 for 24K on Monday, rising to Dh408.75 on Tuesday before peaking midweek. However, Thursday saw a reversal with 24K dipping by Dh4.75, signalling a cooling in momentum. Friday’s continued decline aligns local prices more closely with global cues.
Analysts attribute the shift to a combination of international market adjustments and reduced safe-haven demand amid improving trade sentiment between major global economies. The dirham’s link to the US dollar also plays a role in how global gold trends are reflected locally.
Global market trends
On the international front, spot gold edged down 0.1% to $3,363.91 per ounce by 0243 GMT, though it still recorded a 0.4% gain over the week. US gold futures also fell 0.2% to $3,365.50. The dip came amid renewed optimism surrounding US trade negotiations with the EU and Japan, dampening safe-haven appeal.
Despite this, gold remained supported by a broadly weaker US dollar, which makes gold more affordable for holders of other currencies. The dollar index was on course for its worst weekly performance in a month, providing some cushion for gold prices.
Other precious metals
Silver inched up 0.2% to $39.14 per ounce and posted a 2.5% weekly rise. Platinum fell slightly to $1,407.10, while palladium gained 0.9% to $1,238.73, reflecting mixed performance across the precious metals sector as markets react to evolving economic data and rate expectations.