Dubai gold prices drop below Dh500 as global rates slide 1pc
Silver and platinum also record early-week declines
DUBAI – Gold prices in Dubai continued their decline on Monday, falling further below the Dh500 mark as global bullion rates retreated.
According to Dubai Jewellery Group, today’s retail rates (October 27) stand at Dh490.25 per gram for 24K, Dh454.00 for 22K, Dh435.50 for 21K, and Dh373.00 for 18K.
This marks the second consecutive day of decline, reflecting a broader global downturn in the precious metals market amid renewed optimism over US-China trade relations and a firmer US dollar.
Global market shift
On the international stage, spot gold slipped around 1% to $4,072.65 per ounce by 0504 GMT, while US gold futures for December delivery fell 1.3% to $4,085.60. The US dollar climbed to a more than two-week high against the yen, making gold costlier for non-dollar holders.
Market sentiment brightened after top US and Chinese officials outlined the framework for a potential trade deal between Presidents Donald Trump and Xi Jinping, which tempered safe-haven demand.
Monetary policy watch
Investors are now focused on the US Federal Reserve’s upcoming policy statement, with expectations of a quarter-point rate cut at Wednesday’s meeting. While the move is largely priced in, markets are awaiting further guidance from Fed Chair Jerome Powell. Historically, gold benefits from lower interest rates due to its non-yielding nature.
The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, reported its holdings fell 0.5% to 1,046.93 metric tons on Friday, suggesting a mild investor pullback after months of strong inflows.
Other precious metals
Among other metals, silver dropped 1.3% to $48.04 per ounce, platinum edged down 0.1% to $1,604.80, and palladium slipped 0.8% to $1,418.00.