Dubai gold prices ease after rally, 24K at Dh496.25 and 22K at Dh459.75.
Dubai: Gold prices in Dubai slipped below the Dh500 mark on Thursday morning, following a sharp rally in the previous session that pushed the 24-karat rate above the key threshold.
The 24-karat gold rate stood at Dh496.25 at 8.53am on Thursday, down Dh4.50 from Wednesday’s price of Dh500.75. The 22-karat rate also declined by Dh4, falling from Dh463.75 to Dh459.75 over the same period.
The decline followed a sharp Dh8.75 rise in the 24-karat rate on Wednesday, when prices jumped from Dh492 to Dh500.75. The 22-karat rate also increased by Dh8.25, climbing from Dh455.50 to Dh463.75.
Dubai gold moves through a wide range in July
Gold prices in Dubai have seen notable fluctuations since the start of July, with the 24-karat rate ranging between Dh481.50 and Dh503.
The month began with 24-karat gold priced at Dh489.75 before rising above the Dh500 mark on July 3. Prices reached Dh503 on July 4 and remained at that level on July 5, marking the highest rate recorded so far in July.
Gold prices then eased to Dh499 on July 6 and Dh490 on July 8, before recovering briefly to Dh497.25 on July 9. The 24-karat rate stayed around Dh496.50 on July 11 and July 12 before declining further to Dh483.50 on July 13.
The downward trend continued, with prices touching a monthly low of Dh481.50 on July 16 and July 17. The rate then began recovering, rising from Dh483 on July 20 to Dh492 on July 21 and Dh500.75 on July 22.
The 22-karat gold rate followed a similar trend, starting July at Dh453.50 before reaching a monthly high of Dh466 on July 4 and July 5. Prices later declined to Dh446 on July 16 and July 17, before recovering to Dh463.75 on Wednesday.
Thursday’s decline left the 24-karat rate Dh6.75 below its monthly peak, while the 22-karat variety remained Dh6.25 below its highest level for the month.
Global gold holds recent gains
Gold prices held on to recent gains in global markets, supported by dip-buying activity despite renewed inflation concerns from rising oil prices and uncertainty over the outlook for US interest rates.
Bullion was trading at around $4,130 an ounce after gaining 3% over the previous two sessions. Investors returned to the market following an earlier decline, while ongoing tensions in the Middle East continued to support demand for the precious metal.
Oil prices climbed to multiweek highs, raising concerns that higher energy costs could fuel inflationary pressures in the US and influence the Federal Reserve’s interest-rate decisions.
The US and Iran have indicated that they are not ready to resume negotiations following a fresh escalation in attacks. Strikes were also reported on tankers travelling through the Red Sea, marking the first such incidents since the conflict began in late February.
Interest-rate decision remains in focus
Traders are weighing the impact of rising energy prices alongside weaker US economic data ahead of the Federal Reserve’s meeting next week.
Higher interest rates typically put pressure on gold prices because the metal does not generate interest income. Market participants remain divided over whether the US central bank will raise rates, while limited forward guidance from Fed Chair Kevin Warsh has added to uncertainty.
Gold largely moved in the opposite direction to US Treasury yields during the conflict before stabilising above $4,000 this week, a level some traders view as a key support zone.
The precious metal remains about 20% below levels recorded before the US and Israel launched strikes on Iran in late February. Gold had reached a record high of nearly $5,600 an ounce in the previous month following a multiyear rally.
