Dubai gold rates slip to Dh394.50 amid global price volatility
US-China deal impacts bullion demand, lowers safe-haven buying
DUBAI: Gold prices in Dubai witnessed slight drops on Monday, reflecting the broader trend in global markets.
The 24-carat gold rate stood at Dh394.50, while 22-carat and 21-carat were priced at Dh365.50 and Dh350.25 respectively. The 18-carat variant was recorded at Dh300.25.
The price movement comes as spot gold edged up by 0.14 percent to $3,279.97, and US gold futures rose 0.05 percent to $3,289.55, indicating cautious optimism after a series of geopolitical and economic developments.
Market influences
A fresh trade agreement between the United States and China has boosted investor confidence, prompting a shift away from traditional safe-haven assets like gold. The pact, which accelerates rare earth shipments to the US, has significantly affected bullion demand. Adding to the pressure, a ceasefire deal between Iran and Israel has further subdued geopolitical concerns.
Despite a general downtrend, any escalation in tensions or trade frictions could quickly reverse sentiment. Central banks may also ramp up purchases if global uncertainties resurface, lending fresh support to the precious metal.
Precious metals outlook
The week began with gold hovering near a one-month low at $3,265 in early Asian trading, but prices later steadied. Meanwhile, spot silver rose nearly 1 percent to $36.63, its highest since June 18. Platinum surged 5.1 percent to $1,423.26, while palladium jumped over 8 percent to $1,136.68, marking its strongest level since October 2024.
Platinum’s rally follows data from the World Platinum Investment Council citing robust jewellery demand in China. Analysts now forecast short-term volatility, with platinum possibly peaking at $1,500 before slipping to $1,200, and palladium expected to retreat to around $1,050 by mid-July.