Dubai gold reaches Dh516.50 per gram as weekly losses weigh on global bullion
Silver gains as platinum and palladium face weekly declines
DUBAI – Dubai gold rates moved higher on Saturday, with the precious metal regaining some ground after several sessions of declines during the week.
According to the Dubai Jewellery Group, the retail price of 24K gold reached Dh516.50 per gram, while 22K stood at Dh478.25 and 18K at Dh393.00.
The latest move comes as international gold markets remain under pressure from elevated US Treasury yields, expectations of further interest rate increases and shifting geopolitical risks surrounding Iran and the Strait of Hormuz.
Dubai gold rates
The 24K rate increased by Dh2.75 from Friday’s Dh513.75 per gram, while 22K rose by Dh2.50 from Dh475.75. The 18K price also gained Dh2, moving from Dh391.00 to Dh393.00.
Compared with Thursday, however, Saturday’s rates remain lower. The 24K price is down Dh0.50 from Dh517.00, while 22K has slipped Dh0.50 from Dh478.75 and 18K is down Dh0.50 from Dh393.50.
The weekly comparison shows a broader retreat. Wednesday’s rates were Dh523.50 for 24K, Dh484.75 for 22K and Dh398.50 for 18K. Tuesday recorded Dh523.25, Dh484.75 and Dh398.25 respectively, while Monday’s rates were Dh525.00, Dh486.00 and Dh399.50.
That leaves 24K gold Dh8.50 below Monday’s level, with 22K down Dh7.75 and 18K lower by Dh6.50. The latest increase therefore follows a week in which Dubai retail gold prices moved down from Monday’s levels despite Saturday’s recovery.
Global market
Internationally, spot gold was up 0.1% at $4,282.98 an ounce on Friday, while US gold futures settled 0.5% higher at $4,321.20. Despite the late-week gains, spot gold was heading for a weekly decline of about 2.1%.
Higher US Treasury yields have increased the opportunity cost of holding non-yielding bullion. The benchmark 10-year Treasury yield also reached a fresh 19-year high, adding pressure to gold as markets assessed the outlook for US monetary policy.
The Federal Reserve raised interest rates by 25 basis points last week, its first increase in three years, and signalled further increases. Traders were pricing in a 66% chance of another hike in October and a 93% probability of a December increase, according to CME’s FedWatch Tool.
Geopolitical developments involving Iran and the Strait of Hormuz have also remained important for energy and inflation markets. Negotiators in New York were reported to be exploring a phased path out of the war that could involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran.
Oil prices fell about 3% as some concerns over potential supply disruptions eased. The movement in energy prices remains closely watched because higher oil costs can add to inflation pressures and influence expectations for interest rates.
Other precious metals
Other precious metals also remained under pressure over the week. Spot silver gained 0.5% on Friday to $64.26 an ounce, while platinum rose 1.7% to $1,780.28 and palladium slipped 0.3% to $1,270.30.
Despite Friday’s gains in silver and platinum, all three metals were heading for weekly losses as investors continued to assess higher yields, inflation risks, monetary policy and developments in the Middle East.