Gold prices ease after recent gains, while global factors keep bullion near record highs.
Dubai: Gold prices in Dubai slipped slightly on Thursday morning, surrendering a portion of earlier gains as global markets balanced fragile geopolitical signals against changing interest rate expectations.
The 24‑karat gold rate fell to Dh569 from Dh569.25, while 22‑karat slipped to Dh526.75 from Dh527. The slight retreat follows a brief rally, with price movements still largely influenced by ongoing geopolitical developments and signals from major central banks.
Monthly trend shows sharp swings
April opened strongly, with 24‑karat gold at Dh573 on April 1, before a steady decline pulled prices down to Dh561 by April 6. The early drop was followed by a rebound, with rates climbing back to Dh569 by April 8. Thursday’s slight dip indicates the market is still struggling to find a clear direction after this back-and-forth movement.
A similar pattern has been observed for 22‑karat gold, which started the month at Dh530.75, fell to Dh519.50 midweek, and then recovered to Dh527 before easing slightly again.
Global markets keep gold supported
On international markets, bullion hovered near $4,715 an ounce following a 1.5% gain over the past two sessions, bolstered by a weaker dollar and a rebound in oil prices. Diplomatic signals from Washington suggesting direct talks with Iran provided some relief, though persistent regional tensions have kept investors cautious.
In recent weeks, gold has tracked broader risk assets, with its safe-haven appeal occasionally tempered as investors liquidate positions to cover losses elsewhere.
Rate outlook complicates direction
Rising energy prices and inflation concerns stemming from the conflict have increased the likelihood that central banks may delay rate cuts or even consider further tightening—factors that typically weigh on gold, which offers no yield.
At the same time, mounting risks to growth and employment could eventually support lower rates, boosting bullion demand. Minutes from the latest Federal Reserve meeting highlighted a split among policymakers between these opposing scenarios.
In the short term, gold remains sensitive to headlines on the conflict and US policy signals. The recent pullback from early April highs provides a slightly more attractive entry point, though volatility is expected to continue in the coming days.
