Dubai gold prices hold as global bullion falls nearly 2% this week
Dollar climbs 0.19% while investors await Fed’s preferred inflation measure
DUBAI: Gold prices in Dubai held firm on Friday, showing resistance to global downward trends.
The 24-carat, 22-carat, 21-carat, and 18-carat segments all recorded no change from the previous session. Despite global market movement, local rates retained stability amid muted trading activity.
The international pressure did not weigh on the UAE market, where investors often use gold as a hedge in times of economic flux. The strength of Dubai’s retail gold market lies in its responsiveness to international spot rates while also being cushioned by regional demand patterns.
Global bullion down
On the global front, spot gold slipped 0.81 percent to $3,294.53 by 4:03 GMT. US gold futures also declined 0.69 percent to $3,320.94, contributing to a weekly drop of 1.7 percent in bullion prices. The downturn comes as the US dollar index gained 0.19 percent to reach 99.47, making gold more expensive for holders of other currencies.
The greenback’s rise was driven by economic data pointing towards persistent inflationary pressure and slowing growth. This week, the US Labour Department reported higher-than-expected jobless claims, while official data confirmed the economy contracted in Q1 2025. These developments, along with stagnant trade negotiations and revived tariffs, added uncertainty to the global gold outlook.
Markets are now eyeing the April personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation measure, which is expected to show a 0.1 percent monthly rise and a 2.2 percent increase year-on-year. Investors anticipate clues about potential rate cuts later this year, which would influence gold demand.
Precious metals slump
The broader precious metals market mirrored gold’s decline. Spot silver dipped 0.95 percent to $33.03, platinum edged down 0.28 percent to $1,079.27, and palladium slipped 0.4 percent to $969.28.