Gold prices in Dubai drop more than Dh53 a gram from monthly high.
Dubai: Gold prices in Dubai opened lower on Monday morning, offering jewellery buyers another dip after a volatile month that saw rates fluctuate sharply from recent highs to their lowest levels in weeks.
The 24-karat variety was priced at Dh489.25 per gram on Monday morning, down from Dh492.75 on Sunday. The popular 22-karat variety stood at Dh453 per gram, compared with Dh456.25 a day earlier.
The latest decline means 24-karat gold is now Dh53.25 per gram lower than its June 2 level of Dh542.50, while 22-karat gold has fallen Dh49.25 from Dh502.25 over the same period. As a result, buying 10 grams of 22-karat jewellery would cost nearly Dh492 less than at the month’s peak, before making charges and VAT.
June rally gives way to sharp correction
Dubai gold prices began the month at elevated levels, with 24-karat gold at Dh539.75 on June 1, rising to Dh542.50 the following day. The 22-karat rate also crossed Dh500 per gram in the opening days of June, keeping jewellery buyers cautious.
Prices eased only slightly on June 3 and June 4, but the first significant decline came on June 5, when 24-karat gold fell to Dh522.50 and 22-karat slipped to Dh483.75. Rates then held around those levels for several days before another sharp drop on June 10, when 24-karat declined to Dh492.50 and 22-karat eased to Dh456.
The market saw a brief recovery in mid-June, with 24-karat climbing back above Dh520 on June 15 and June 16. However, the rebound was short-lived, and prices trended lower again in the final week of the month.
Buyers see better entry point
Monday’s opening rates are close to the month’s lowest levels. The lowest recorded price for 24-karat gold in June was Dh486 on June 25, while 22-karat touched Dh450 on the same day.
This has made the final week of June more attractive for UAE residents who had postponed purchases when prices were above Dh520 and Dh530 per gram earlier in the month. The correction is also significant for wedding buyers and families making larger jewellery purchases, as even small per-gram changes can substantially impact the final bill once making charges are included.
Global gold weakens near $4,000
International gold prices slipped to near $4,000 an ounce as markets reacted to renewed US–Iran tensions, which had briefly unsettled earlier expectations of easing geopolitical risk.
Spot gold fell as much as 0.9%, after rising 1.6% on Friday. Oil prices, meanwhile, moved higher after a tanker carrying Qatari crude was struck during weekend attacks that disrupted shipping through the Strait of Hormuz.
The two sides have since agreed to pause hostilities and are expected to meet on Tuesday in Doha, Axios reported, citing unidentified US officials.
Gold has also come under pressure from the interest-rate outlook. US inflation data came in elevated but broadly in line with analyst expectations, while Treasury yields eased after the personal consumption expenditures (PCE) price index rose 0.4% in May from the previous month.
Gold is down about 23% since the US and Israel launched strikes on Iran in late February, as higher energy prices have fuelled inflation concerns and increased expectations that central banks may keep interest rates higher for longer. This typically weighs on bullion, as gold does not generate interest income.
