Dubai gold rates see 24K at Dh533 as global prices hit two-week low
Silver also slips as markets reassess interest rate expectations
DUBAI – Dubai gold rates opened Monday with renewed pressure as international bullion prices extended their decline amid a stronger dollar and rising expectations of a US interest rate increase.
The latest retail jewellery rates from the Dubai Jewellery Group put 24K gold at Dh533.00 per gram, while 22K stood at Dh493.75 and 18K at Dh405.75.
Global markets were also weighing fresh US-Iran military escalation around the Strait of Hormuz, which pushed oil prices higher and added another layer of uncertainty across commodities.
Global markets
The local market is tracking a sharp move lower in international bullion. Spot gold fell 0.7 per cent to $4,423.84 per ounce by 0204 GMT, reaching its lowest level since August 19 after falling more than 3 per cent on Friday. US gold futures for December delivery also declined 1.3 per cent to $4,472.90.
The latest retreat followed Federal Reserve Chair Kevin Warsh's hawkish stance on inflation and interest rates at the Jackson Hole economic symposium. Markets have increased their expectations of a September rate increase, with the implied probability rising to 57 per cent from 36 per cent before Warsh's remarks.
The US dollar was trading near a two-week high as the stronger rate outlook supported demand for the greenback. Higher interest rates and a firmer dollar can weigh on gold because the metal does not generate interest income.
US economic data due later this week, including job openings, the ADP employment report, weekly jobless claims and non-farm payrolls, could provide further direction for bullion and currency markets.
Geopolitical developments, meanwhile, remained firmly in focus. US forces struck two Iranian launchers on Larak Island on Sunday, marking the first known American strikes on Iran since late July. Iran subsequently reported retaliatory attacks on US bases in Jordan, escalating concerns around the wider regional conflict.
President Donald Trump also claimed that Iran's Kharg Island oil terminal was being severely damaged, although the claim had not been independently confirmed. The developments have intensified attention on the Strait of Hormuz, where shipping activity remains sharply reduced amid security concerns.
Oil prices responded quickly, with Brent crude rising above $90 a barrel during Monday trading as renewed US-Iran hostilities revived fears of disruption through the strategic waterway. Brent gained more than 2 per cent in early trading, while West Texas Intermediate also moved higher. The Strait of Hormuz handles about one-fifth of global oil flows, making any prolonged disruption significant for energy markets.
Other precious metals
Other precious metals also moved lower alongside gold. Spot silver fell 0.5 per cent to $66.01 per ounce, while platinum declined 0.5 per cent to $1,810.64. Palladium dropped 1.7 per cent to $1,397.11.
The precious metals market is now facing a combination of tighter US rate expectations, a firmer dollar and renewed geopolitical risk, with incoming US economic data set to provide the next major test for bullion prices.