UAE gold rates edged lower amid softer oil prices and easing geopolitical concerns.
Dubai: Gold prices in Dubai edged lower on Tuesday morning as global markets reacted to easing geopolitical tensions after US President Donald Trump said he had paused a planned military strike against Iran to allow negotiations to continue.
In Dubai, 24K gold fell to Dh547.25 per gram from Dh547.50 on Monday evening, while 22K gold eased to Dh506.75 from Dh507.00.
The decline comes as investors moved away from safe-haven assets following Trump’s indication that Gulf leaders from Qatar, Saudi Arabia, and the UAE had urged Washington to delay military action against Iran while talks continue.
The slight pullback in bullion prices also reflects weaker oil prices and a stabilisation in global bond markets following sharp volatility last week.
For UAE shoppers, prices still remain close to historic highs despite today’s slight dip, keeping jewellery demand subdued, while some investors continue to buy during price dips.
Regional trends
In Saudi Arabia, gold prices remained largely stable despite softer global trends. 24K gold held steady at SAR 568 per gram, while 22K gold stayed unchanged at SAR 519 per gram.
The stability in Saudi prices suggests that regional markets are awaiting clearer signals from geopolitical developments and the US Federal Reserve before making more decisive moves.
Indian gold buyers are also closely watching global uncertainty, especially as bullion prices stay elevated ahead of the wedding and festive demand season.
Recent price volatility has made retail buyers more cautious, with many opting for staggered purchases rather than buying in bulk. Analysts say that further easing of Middle East tensions or a stronger US dollar could add short-term pressure on prices, although ongoing inflation concerns continue to support gold’s long-term appeal.
International gold trends
Globally, spot gold fell 0.5% to $4,543.49 an ounce on Tuesday morning, though it remained above Monday’s 1.5-month low of $4,479.54.
US gold futures for June delivery slipped 0.2% to $4,546.90.
According to Reuters, gold prices had already recorded their biggest one-day drop since March 26 last Friday, falling 2.4%, before recovering slightly in the previous session. Markets are now weighing easing geopolitical tensions against ongoing inflation concerns.
Analysts say investors are closely watching the minutes of the US Federal Reserve’s April meeting, due on Wednesday, for signals on future interest rate policy.
Oil prices also fell sharply, easing some inflation concerns. Brent crude dropped 2.7% to $109.09 a barrel, while WTI crude fell to $107.28. Lower oil prices typically reduce demand for gold as an inflation hedge.
Market attention is also focused on the US central bank after Kevin Warsh was confirmed as the next Federal Reserve chief, adding uncertainty around future rate-cut expectations.
Other precious metals also declined, with spot silver down 2% to $76.09 an ounce, platinum falling 0.7% to $1,965.40, and palladium slipping 1.5% to $11,397.50.
