Dubai gold prices ease further as 24K drops to Dh522.50 and 22K to Dh483.75.
Dubai: Dubai gold prices moved lower on Wednesday morning, extending their decline from the start of the week and pulling local rates further away from some of the highest levels recorded this month.
The 24-karat gold rate fell to Dh522.50 per gram on Wednesday, down Dh3.50 from Dh526 on Tuesday. The 22-karat rate dropped to Dh483.75, compared with Dh487 a day earlier, marking a decline of Dh3.25 per gram.
Compared with Monday’s rates, 24K gold is now Dh8.25 lower, while 22K has declined by Dh7.75 over the same two-day period.
Prices retreat from August highs
Gold prices in Dubai have moved through a wide range in August. The 24K rate started the month at Dh487.25 per gram, climbed above Dh500 and reached Dh533.25 on August 12, the highest level recorded so far this month.
Wednesday’s rate of Dh522.50 is Dh10.75 below the August 12 peak, although it remains Dh35.25 higher than the August 1 price.
22K gold follows the same trend
The 22K variety followed a similar path, rising from Dh451.25 per gram at the start of August to Dh494 on August 12, before easing to Dh483.75 on Wednesday.
Global gold recovers after Tuesday’s drop
Global gold prices edged higher on Wednesday after a sharp sell-off in the previous session. Spot gold rose about 0.2% to $4,342.33 an ounce, recovering modestly after falling nearly 2% on Tuesday. The rebound came as US Treasury yields eased from recent highs, reducing some of the pressure on bullion.
Investors are also awaiting the Federal Reserve’s latest meeting minutes, which could provide further clues about the outlook for US interest rates. Higher yields and expectations of tighter monetary policy can weigh on gold because the metal does not generate interest.
Gold rose as much as 0.6% to above $4,360 an ounce on Wednesday, recovering after its biggest one-day decline in nearly a month on Tuesday.
US Treasury yields steadied after a sharp bond sell-off had pushed the 30-year Treasury yield to its highest level since 2007, easing some of the pressure on the non-yielding precious metal.
Higher bond yields and borrowing costs can weigh on gold because the metal does not generate interest income.
Gold has nevertheless recovered in recent weeks to trade around the $4,400-an-ounce level, supported by renewed investor demand and continued central-bank purchases, including buying from China.
A Bank of America fund manager survey also showed that the proportion of investors viewing gold as undervalued had reached its highest level since March 2023, highlighting renewed confidence in the metal despite its recent pullback.
Uncertainty over US-Iran relations remains another factor for gold markets. President Donald Trump said on Tuesday that no talks were taking place with Tehran, while uncertainty over the future of US-Iran diplomatic arrangements continues to add to market volatility.
Oil prices have risen amid growing uncertainty over the Strait of Hormuz, with Brent crude trading above $91 a barrel on Wednesday.
Higher energy prices can fuel inflation and potentially reduce expectations for interest-rate cuts, putting upward pressure on bond yields and weighing on gold, which does not generate interest income. Markets are closely watching the Federal Reserve for further clues on the direction of US rates.
