India records a sharper drop while Saudi gold prices remain steady amid ongoing uncertainty.
Dubai: Gold prices in Dubai fell on Friday, mirroring a broader global decline as the ongoing US-Israel conflict involving Iran and rising oil prices continued to weigh on investor sentiment. Elevated crude prices have increased inflation concerns and strengthened expectations of prolonged high interest rates, reducing the appeal of non-yielding assets such as gold.
In morning trade, 24-carat gold fell to Dh563.25 per gram from Dh565.75 in the previous session, marking a decline of Dh2.50. The 22-carat variant also slipped to Dh521.50 from Dh524.00, reflecting softer demand and cautious market positioning.
The decline extends losses from Thursday, when Dubai gold prices had already slipped on weaker global cues. At the time, markets were reacting to stalled US-Iran negotiations and elevated crude prices, which fuelled fears of persistent inflation and “higher-for-longer” interest rates — a major headwind for non-yielding assets like gold. Dubai’s 24-carat gold had already fallen as global bullion weakened amid Strait of Hormuz tensions and rising oil costs.
Saudi Arabia, India trends
In Saudi Arabia, gold prices remained unchanged, signalling a pause in trading momentum.
24-carat gold held steady at 598.00 SAR, while 22-carat gold stayed flat at 550.00 SAR.
India, however, recorded a sharper correction in line with global weakness.
24-carat gold fell to ₹152,950 per 10 grams from ₹154,360, while 22-carat dropped to ₹140,200 from ₹141,500.
The steeper decline highlights how international price pressures and currency movements are increasingly filtering into retail gold markets.
Global markets
Internationally, gold prices extended losses for a third consecutive session, with spot gold at $4,679.41, down $26.76 or 0.57%. The precious metal is also heading for a weekly decline after a four-week rally.
Samer Hasn, Senior Market Analyst at XS.com, said gold’s weakness persists despite heightened geopolitical tensions. “Gold declines for the third day in a row while still holding just above $4,700 per ounce,” he said, noting that the fading momentum of ceasefire efforts and renewed disruptions to oil supply are reshaping market sentiment.
Brent crude prices have climbed above $100 per barrel amid continued tensions around the Strait of Hormuz, fuelling inflation concerns and strengthening expectations that interest rates could remain higher for longer. This has reduced gold’s appeal, as rising yields increase the opportunity cost of holding non-yielding assets like bullion.
At the same time, fresh outflows from major gold exchange-traded funds point to weakening institutional demand, even as geopolitical risks remain elevated.
For now, gold remains caught between opposing forces — safe-haven demand driven by geopolitical uncertainty and continued pressure from high interest rates — leaving prices vulnerable to further volatility in the near term.
