24K gold fell to Dh562.50 after reaching Dh588 earlier this month.
Dubai: Dubai gold prices edged lower on Tuesday morning, giving shoppers a brief breather after another volatile month for bullion, as global markets remained caught between Iran war risks, oil-driven inflation pressures and cautious central bank signals.
The 24K gold rate slipped to Dh562.50 per gram, down from Monday’s Dh565.75 and significantly below this month’s peak of Dh588, offering buyers a slightly better entry point after weeks of sharp swings.
At 9:20am, 24-karat gold was priced at Dh562.50 per gram, down from Dh565.75 on Monday, while 22-karat gold fell to Dh520.75 from Dh524.
This puts 24K gold Dh25.50 below its April 17 peak of Dh588, while 22K is now Dh23.75 lower than its Dh544.50 high recorded on the same day.
The latest decline keeps Dubai gold near the lower end of this month’s range, although prices are still slightly above the April 6 low of Dh561 for 24K and Dh519.50 for 22K. Compared with the start of the month, 24K gold is now cheaper by Dh10.50 per gram, while 22K has dropped by Dh10 from its April 1 level.
Shoppers get a small breather
The price drop may be modest, but it is significant for buyers who postponed purchases when rates crossed Dh580 earlier this month. A 10-gram purchase of 24K gold now costs Dh255 less than it did at the April 17 peak, before making charges, taxes and retailer pricing differences are added.
The monthly trend has been uneven. Gold started April at Dh573 for 24K and Dh530.75 for 22K, fell during the first week, recovered through mid-month, and then climbed to its highest level on April 17. Prices remained elevated around Dh580 on April 19 and 20 before easing again in the final week.
Tuesday’s decline continues that late-month cooling, although the market has not yet returned to the lows seen in early April. This suggests shoppers may have only a limited buying window, especially if global bullion prices react again to geopolitical developments or interest rate signals later this week.
Global gold eases
Globally, bullion traded near $4,670 an ounce on Tuesday after slipping on Monday, as traders tracked US-Iran diplomatic efforts and a busy week of major central bank decisions. Reuters reported that spot gold fell to a three-week low, dropping 1.6% to around $4,605 per ounce on Tuesday, while US gold futures also eased as rising oil prices fuelled inflation concerns and expectations of higher interest rates.
Gold’s latest weakness has come despite continued tensions around the Strait of Hormuz, where disruptions to energy flows have kept oil prices elevated and added to inflation concerns. AP reported that Asian markets weakened and oil prices rose after talks to end the Iran conflict stalled, while the Bank of Japan kept its benchmark rate unchanged at 0.75% and flagged inflation risks linked to higher oil prices.
Rates remain the key risk
The next major trigger for gold will come from central banks, with investors closely watching decisions from the Federal Reserve, the European Central Bank, the Bank of England and the Bank of Canada. Reuters said these major central banks are widely expected to keep interest rates steady, while markets remain focused on how policymakers assess the inflation impact of the Middle East conflict.
Higher-for-longer interest rates are generally negative for gold because the metal does not generate interest income. This creates a difficult backdrop for bullion, with geopolitical risks offering support while inflation concerns and cautious central bank messaging limit fresh buying.
Gold has now retreated from its April highs, but the market remains highly sensitive to any sign of progress or setbacks in negotiations involving Iran and the Strait of Hormuz.
