Dubai gold rates drop by up to Dh5.75 per gram as global prices retreat
Silver joins gold retreat amid stronger dollar and easing market sentiment
DUBAI – Dubai gold prices moved lower on Tuesday, mirroring weakness in international bullion markets as investors turned their attention to the US Federal Reserve's interest rate decision due this week.
The decline comes after gold climbed on Monday, with a firmer US dollar reducing the appeal of the precious metal for buyers using other currencies. Retail jewellery prices across the UAE also recorded notable declines from the previous day, according to the Dubai Jewellery Group.
The latest retail rates show lower prices across the most popular gold categories, offering buyers a cheaper entry point after Monday's higher levels.
Dubai gold rates
According to the Dubai Jewellery Group, 24K gold was priced at Dh487.00 per gram on Tuesday, down Dh5.75 from Dh492.75 on Monday. The price of 22K gold slipped to Dh451.00 per gram, compared with Dh456.25 a day earlier, marking a decline of Dh5.25.
Meanwhile, 18K gold fell to Dh370.50 per gram, down Dh4.50 from Monday's Dh375.00. Monday's price list also showed 21K gold at Dh437.50 per gram and 14K gold at Dh292.50 per gram.
Global market
International gold prices also traded lower on Tuesday morning as markets focused on the outcome of the US Federal Reserve's two-day policy meeting, which concludes on Wednesday.
Spot gold fell 0.7 percent to $4,045.89 per ounce, while US gold futures for August delivery dropped 0.8 percent to $4,046.20. Analysts said bullion continues to trade within a relatively narrow range as investors await fresh signals from the central bank on the direction of interest rates.
The US dollar remained close to a one-month high, making dollar-priced gold more expensive for overseas buyers and limiting demand. According to CME FedWatch data, markets currently see a 62 percent probability that the Federal Reserve will leave interest rates unchanged this week, while 38 percent expect a 25-basis-point increase. Expectations for a September rate hike have also strengthened, with markets pricing in an 81 percent chance.
Adding to market attention, US President Donald Trump again urged the Federal Reserve to cut interest rates. He also said the United States was holding "good talks" with Iran and that a negotiated settlement remained possible, while warning military strikes could resume if diplomacy failed. Regional tensions remained in focus after Saudi Arabia, Jordan and Iraq reported drone attacks on Monday, keeping developments linked to Iran and the Strait of Hormuz on investors' radar.
Other precious metals
Other precious metals also traded lower during Tuesday's session. Spot silver declined 2 percent to $57.23 per ounce, while platinum fell 0.9 percent to $1,605.93. Palladium also weakened, slipping 1.6 percent to $1,270.97 as investors remained cautious ahead of the Federal Reserve's policy announcement and monitored geopolitical developments alongside movements in the dollar and oil markets.