24K gold drops to Dh487.50 after volatile July rally pushed prices above Dh500.
Dubai: Gold prices in Dubai declined on Thursday morning, offering jewellery buyers slightly lower rates after the precious metal recorded gains in the previous trading session.
The 24-karat gold price stood at Dh487.50 per gram at 9:54 am, down Dh4 from the previous rate of Dh491.50.
The 22-karat gold rate also declined by Dh3.50, falling to Dh451.50 per gram from Dh455.
Prices retreat after Wednesday’s rise
Thursday’s decline came after a volatile month for Dubai gold prices, with the 24-karat rate fluctuating between Dh481.50 and Dh503 per gram.
The drop followed gains recorded during the previous session, as gold prices continued to respond to changing market conditions and global economic developments.
The metal reached Dh503 per gram on July 5 before declining to Dh481.50 on July 17. Prices later recovered to Dh500.75 on July 22, then eased to Dh485 on July 28 before rebounding to Dh491.50 on Wednesday.
Thursday’s price puts 24-karat gold Dh15.50 below its July peak, while remaining Dh6 above the month’s lowest level.
The 22-karat gold rate showed a similar trend, rising to Dh466 per gram early in the month before dropping to Dh446 in mid-July. It briefly climbed back to Dh463.75 on July 22 before declining again to Dh451.50 on Thursday.
Gold holds near $4,060 globally
International gold prices remained near $4,060 an ounce, holding onto a modest gain after rising by nearly 1 per cent on Wednesday.
The US Federal Reserve kept interest rates unchanged in a 9-3 vote, although the divided decision suggested that some policymakers believe higher borrowing costs may still be needed to bring inflation under control.
Fed Chairman Kevin Warsh said: “If inflation continues to be elevated through the forecast period, interest rates could well be part of that solution, but I wouldn’t say it’s in isolation.”
Traders scaled back expectations of an immediate rate increase and pushed forecasts for the next policy move further into the year. This helped lower short-term US Treasury yields and reduced the opportunity cost of holding gold.
Gold prices have declined by nearly a quarter since the US-Iran war began more than five months ago, with higher energy prices adding to inflation concerns and increasing the possibility that interest rates could remain elevated for longer.
However, strong buying interest around the $4,000-an-ounce level has provided support in recent weeks, putting gold on track for its first monthly gain since February.
