Dubai gold records Dh1.50 decline amid Middle East tensions
Silver rises as oil and dollar shape precious metals
DUBAI – Dubai's gold market remained firmly in focus on Saturday, with retail jewellery prices easing after the previous day's gains.
According to the Dubai Jewellery Group's suggested retail prices for July 25, gold became slightly cheaper across all major categories compared with Friday.
The price of 24K gold stood at Dh488.50 per gram, down from Dh490.00 on Friday, a decline of Dh1.50.
Similarly, 22K gold fell to Dh452.25 per gram from Dh453.75, while 18K gold slipped to Dh371.75 per gram, compared with Dh373.00 a day earlier. Each category registered a decline of Dh1.50 per gram, reflecting softer international bullion prices.
The movement follows another volatile week for gold, with investors balancing geopolitical risks against expectations for US monetary policy.
Global gold markets
Internationally, spot gold edged 0.1 percent higher to $4,052.78 per ounce on Friday after suffering a sharp decline in the previous session. Despite the modest recovery, bullion remained well below its record highs reached earlier this year, although it was still on track for a weekly gain of around 0.9 percent.
US gold futures for August delivery settled 0.5 percent higher at $4,070.80 per ounce.
Global markets continued to monitor developments surrounding the conflict involving Iran, as well as concerns over shipping routes linked to the Strait of Hormuz and the wider Middle East. Brent crude oil, which had surged above $100 a barrel after attacks on Saudi oil tankers in the Red Sea, later dropped by more than 4 percent, easing some immediate inflation concerns.
The US dollar and Treasury yields also remained in focus ahead of next week's Federal Reserve policy meeting. Markets largely expect the central bank to leave interest rates unchanged, although traders continue to price in an 82 percent probability of a rate increase in September. Higher interest rates generally reduce the appeal of non-yielding assets such as gold.
Across Asia, physical gold demand presented a mixed picture. In India, dealer discounts widened to a seven-week high as elevated prices kept retail buyers on the sidelines, while buying interest in China improved modestly, helping premiums strengthen slightly above international benchmark prices.
Other precious metals
Other precious metals also saw mixed trading during the session. Spot silver climbed 0.8 percent to $58.11 per ounce, outperforming gold as investors returned to the broader precious metals market.
Meanwhile, platinum slipped 0.8 percent to $1,587.17 per ounce, while palladium declined 1.4 percent to $1,239.20 per ounce.