Dubai gold rates fall over Dh11 as global prices slide 2pc
Silver slides 3.4pc as precious metals face broad selling pressure
DUBAI – Dubai gold rates opened lower on Monday, with all three key retail jewellery categories recording declines as global bullion prices came under renewed pressure.
The Dubai Jewellery Group’s suggested retail prices showed 24K gold at Dh505.50 per gram, while 22K and 18K gold stood at Dh468 and Dh384.75, respectively.
The moves came as international gold prices fell sharply amid higher oil prices, rising bond yields and growing expectations of another US interest-rate increase.
Dubai gold rates
According to the Dubai Jewellery Group, 24K gold was priced at Dh505.50 per gram on Monday, down Dh11 from Dh516.50 on Sunday. The 22K rate declined by Dh10.25 to Dh468, while 18K gold fell Dh8.25 to Dh384.75.
The latest prices represent declines of around 2.1% across all three categories compared with the previous day. The lower Dubai rates followed a sharp fall in international bullion prices as investors assessed the impact of energy costs and the outlook for US monetary policy.
Global markets
Spot gold was down 2.1% at $4,198.10 an ounce by 0357 GMT on Monday, putting the metal on track for its biggest daily decline since September 1. US gold futures also fell 2.1% to $4,231 an ounce.
Higher oil prices have intensified concerns over inflation, strengthening expectations that the Federal Reserve could maintain a tighter monetary stance. The Fed raised its target interest-rate range earlier this month by a quarter percentage point to 3.75% to 4%.
Markets were pricing in a 68% probability of another US rate hike in October, according to CME Group’s FedWatch Tool. Higher interest rates and bond yields can reduce the appeal of gold, which does not generate interest income.
Investors are also awaiting a series of US economic indicators this week, including job openings, the ADP employment report, the Personal Consumption Expenditures price index and nonfarm payrolls. Stronger-than-expected inflation or employment figures could add further pressure on bond yields and bullion.
Oil prices moved higher amid uncertainty over flows linked to the Strait of Hormuz. Iran said diplomacy was the only way to resolve its conflict with the United States and Israel after US President Donald Trump rejected an Iranian proposal involving the reopening of the strategic waterway and an end to fighting.
Other precious metals
Other precious metals also recorded steep losses. Spot silver dropped 3.4% to $62.08 an ounce, while platinum fell 2.7% to $1,730.78 and palladium declined 2.8% to $1,231.46.
The pressure across precious metals came as markets focused on the combined impact of elevated energy prices, inflation risks and expectations for US interest rates. Rising energy costs can feed into broader inflation by increasing expenses across the economy, while a higher-rate environment raises the opportunity cost of holding non-yielding metals.