Dubai 24K gold price drops Dh3.50 on Thursday, remains Dh16.75 below July high.
Dubai: Gold prices in Dubai declined on Thursday morning, reversing the gains made the previous day and giving shoppers a slight relief with lower rates.
The 24-karat gold rate stood at Dh486.25 per gram at 9.25am, down Dh3.50 from Dh489.75 recorded on Wednesday. Meanwhile, the 22-karat variety declined by Dh3.25, falling from Dh453.50 to Dh450.25 per gram.
Thursday’s decline left 24-karat gold Dh16.75 below its July peak, while 22-karat gold was Dh15.75 lower than its highest level of the month.
Gold prices started July at Dh489.75 per gram for 24-karat gold and crossed the Dh500 mark by July 3, reaching a monthly high of Dh503 on July 4 and 5.
The 22-karat category followed a similar trend, rising from Dh453.50 at the start of the month to a July peak of Dh466 per gram.
Prices later eased, with 24-karat gold falling to Dh483.50 on July 13 and 22-karat gold declining to Dh447.75. Both categories recovered over the next two days before slipping again on Thursday.
Compared with the beginning of July, 24-karat gold is now Dh3.50 lower per gram, while 22-karat gold has dropped by Dh3.25 per gram.
A customer buying 10 grams of 24-karat gold would pay Dh35 less than on Wednesday and Dh167.50 less than at the monthly peak, excluding jewellery-making charges and taxes.
The 22-karat gold rate followed a similar trend, climbing from Dh453.50 per gram at the start of July to a monthly high of Dh466.
Prices later declined, with 24-karat gold dropping to Dh483.50 on July 13, while 22-karat gold fell to Dh447.75. Both categories recovered over the next two days before surrendering some of those gains on Thursday.
Compared with the beginning of the month, 24-karat gold is now Dh3.50 cheaper per gram, while the 22-karat rate has fallen by Dh3.25 per gram.
A customer buying 10 grams of 24-karat gold would save Dh35 compared with Wednesday’s price and Dh167.50 compared with the July peak, excluding making charges and applicable taxes.
Middle East tensions influence gold markets
Global gold prices also moved lower as investors assessed the impact of escalating Middle East tensions following the United States’ latest strikes on Iran. The developments raised concerns over potential disruptions to energy markets, inflation pressures and broader economic uncertainty, influencing bullion demand.
Bullion prices fell as much as 0.9% to around $4,025 an ounce after US President Donald Trump said strikes would continue until Tehran halted attacks on vessels in the Strait of Hormuz and agreed to reopen the key shipping route.
The temporary ceasefire agreement reached last month has largely collapsed, while oil prices climbed for a fourth straight day on Thursday, reflecting growing concerns over regional tensions and energy market disruptions.
Higher oil prices could prolong inflationary pressures and affect the US Federal Reserve’s interest-rate outlook, putting pressure on gold as the metal does not generate regular returns for investors.
Gold remains near $4,000 level
Gold has continued to trade close to $4,000 an ounce in recent weeks after declining 14% in the second quarter, marking its weakest quarterly performance since 2013.
The drop came amid expectations that the Federal Reserve could keep interest rates higher for longer to tackle inflation risks linked to the conflict and rising energy costs.
Meanwhile, US producer price inflation data released on Wednesday came in weaker than expected, indicating that underlying price pressures had eased before the latest escalation in Middle East tensions.
The latest inflation reading could give the Federal Reserve more flexibility to evaluate economic conditions, although a sustained increase in energy prices could complicate its policy decisions.
Federal Reserve Chairman Kevin Warsh said interest rates remain an important tool for managing inflation, while suggesting that policymakers can take a cautious approach and wait for more economic data before making their next move.
