Dubai gold prices dip as global inflation and oil market risks influence trading.
Dubai: Gold prices in Dubai slipped Thursday morning, offering shoppers a brief respite after several days of elevated rates earlier this month.
The 24-karat gold rate was Dh619.75 per gram at around 9:30 a.m. on Thursday, down from Dh623.75 a day earlier. The 22-karat rate fell to Dh574 per gram, compared with Dh577.50 on Wednesday.
The decline mirrors broader global trends in the bullion market, following recent U.S. economic data that altered interest rate expectations and strengthened the dollar.
Recent Price Swings
Gold prices in Dubai have fluctuated sharply throughout February and early March, highlighting how quickly global events are influencing local jewellery rates.
Gold Price Trends
In mid-February, 24-karat gold in Dubai hovered around Dh600 per gram, trading at approximately Dh596 on February 12 before gradually climbing above Dh600 in the following days. The rally gained momentum toward the end of the month, surpassing Dh620 and reaching around Dh636 by February 28.
The start of March saw an even sharper surge, with prices briefly topping Dh640 on March 2, marking one of the year’s highest levels. Gains were short-lived, however, as rates eased to the Dh615 range by March 9 before rebounding above Dh620 earlier this week.
Thursday’s rate of around Dh619 indicates that gold prices remain volatile, though still below the peaks seen earlier this month.
Global Pressures Weigh on Bullion
International gold prices fell for a second consecutive session after recent U.S. inflation data reduced expectations that the Federal Reserve would quickly cut borrowing costs.
Gold dropped about 1% in global trading, following a modest decline in the previous session. A stronger dollar added further pressure, while rising energy prices linked to Middle East tensions fueled inflation concerns.
Oil markets have been particularly sensitive to regional developments. Brent crude climbed back above $100 per barrel on Thursday after conflicts disrupted parts of the energy supply chain. Several countries have announced the largest coordinated emergency oil release on record, including a U.S. plan to release 172 million barrels from strategic reserves.
Higher interest rate expectations typically weigh on gold, which yields no income. Investors often sell bullion to boost liquidity when other assets in their portfolios come under stress.
Haven Demand Remains
Despite the recent pullback, gold has posted strong gains this year, rising nearly 20% since January, supported by safe-haven demand during periods of geopolitical tension.
Trading has been uneven since the conflict involving Iran began at the end of February, with sharp daily price increases followed by short-term retreats.
Exchange-traded fund (ETF) holdings have also fluctuated. Investors reduced positions last week by the largest margin in over two years, though inflows returned earlier this week as prices stabilised.
Dubai’s retail gold market responds quickly to these global shifts, as local rates closely track international bullion prices and reflect currency movements.
