24K gold has dropped Dh102.50 from its April high, while 22K has declined by Dh94.75.
Dubai: Gold prices dropped to a 90-day low on Friday, giving jewellery buyers their most affordable rates since April following another challenging week for the precious metal.
The 24-karat gold price stood at Dh479.75 per gram at 9.35am on Friday, declining by Dh1.75 from Dh481.50 recorded on Thursday.
The popular 22-karat gold category also dropped by Dh1.75, falling from Dh446 to Dh444.25 per gram.
Friday’s prices marked the lowest levels for both gold categories in available data dating back to April 19.
The drop means the gold value of a 10-gram purchase is now Dh1,025 lower for 24K gold and Dh947.50 lower for 22K gold compared with their April peaks, before factoring in making charges and additional retailer costs.
More than Dh100 erased from 24K gold prices
Dubai’s 24K gold rate has fallen by Dh102.50 per gram, or around 17.6 per cent, from its April 19 peak of Dh582.25.
The 22K gold price has also declined by Dh94.75 per gram, dropping from Dh539 during the same period, representing a similar decrease of about 17.6 per cent.
Gold prices remained elevated through late April and much of May, with 24K gold frequently trading above Dh540 per gram and reaching Dh570.75 on May 11. The decline accelerated in June, although prices briefly moved back above Dh520 per gram during the first half of the month.
By late June, gold prices had slipped below the Dh500 mark and have continued trading near that level through July.
July gains wiped out
The latest decline has erased much of July’s early gains, with 24K gold now down Dh23.25 per gram from its July peak of Dh503, recorded on July 4 and July 5.
The 22K gold rate has fallen by Dh21.75 per gram from its July high of Dh466 during the same period.
Friday’s prices are Dh14 lower for 24K gold compared with July 10, while 22K gold is Dh13 cheaper. Most of the recent drop came over the past three trading sessions, with 24K falling from Dh489.75 on Wednesday to Dh479.75 on Friday.
For buyers who had been waiting for prices to dip below late June levels, the decline has created a bigger saving opportunity. 24K gold is now Dh6 cheaper than on June 29, while 22K has dropped by Dh5.50 over the same period.
Gold set for sharp weekly decline
Global gold prices were on track for their largest weekly drop since early June, despite rising slightly on Friday to around $3,980 an ounce.
The precious metal was down 3.4 per cent for the week as renewed tensions in the Middle East raised concerns that higher energy prices could fuel inflation and influence the US Federal Reserve to consider another interest-rate hike.
The decline came after the US launched a fresh round of strikes on Iran on Thursday, following earlier attacks that targeted an oil tanker near the country’s main crude export terminal.
Oil prices maintained a strong weekly gain, adding to concerns over inflation as the conflict entered its fifth month.
Several US Federal Reserve officials have raised concerns about persistent inflation, warning that interest rates may need to remain elevated or rise further. Higher interest rates typically put pressure on gold, as the non-yielding metal becomes less attractive compared with interest-bearing assets.
A stronger US dollar and rising bond yields also weighed on bullion prices. Since gold is priced in dollars, a stronger currency makes the metal more expensive for buyers using other currencies.
Gold has traded within a relatively tight range around $4,000 an ounce in recent weeks after falling 14 per cent in the second quarter, marking its weakest quarterly performance since 2013.
