Gold jewellery prices ease again in Dubai on the back of weaker global bullion trends.
Dubai: Gold prices in Dubai opened lower on Wednesday, offering jewellery buyers another opportunity to lock in rates following a steady decline from last month’s highs.
The 24-karat variety was priced at Dh481.50 per gram at 7:33 am, down from Dh485.25 on Tuesday. The 22-karat variety stood at Dh446, compared with Dh449.25 a day earlier.
The latest movement means 24-karat gold has fallen by Dh3.75 per gram in a single day, while 22-karat gold is down by Dh3.25 per gram.
Prices fall for third straight day
Dubai gold rates have now declined for three consecutive days, with 24-karat gold easing from Dh492.75 on June 28 to Dh485.75 on June 29, Dh485.25 on June 30, and Dh481.50 on July 1.
The decline has brought local prices to their lowest level since early June. On June 2, 24-karat gold was priced at Dh542.50 per gram, while 22-karat gold stood at Dh502.25. Since then, 24-karat gold has dropped by Dh61 per gram, with 22-karat gold down by Dh56.25 per gram.
That represents a fall of more than 11 per cent from the June 2 level for 24-karat gold, marking a significant correction for buyers who had stayed on the sidelines when prices were near record highs.
Global bullion weakens
The drop in Dubai prices came as global bullion declined for a third consecutive session, with traders weighing signals that the US Federal Reserve may still tighten monetary policy while also tracking progress in US-Iran peace talks.
Spot gold slipped below $3,980 an ounce after losing 2% over the previous two sessions, taking prices to their lowest level since November.
Federal Reserve Bank of Cleveland President Beth Hammack said on Tuesday that she was not seeing much evidence that interest rates are restraining the US economy, adding that the central bank may need to raise rates further to bring inflation back to its 2% target.
Higher borrowing costs typically weigh on gold, as the metal does not generate interest or dividends, making it less attractive when returns on cash and bonds rise.
Buyers watch for further dips
Gold recorded a weak second quarter, falling 14% and marking its worst quarterly performance since 2013. The metal had hit a record high in January, but expectations of potential US rate hikes later this year have since weighed on prices.
US employment data due later this week will be closely watched by traders. Recent figures showed job openings were little changed in May, suggesting labour demand remains steady and giving the Federal Reserve more room to maintain a tight policy stance while it assesses inflation trends.
Technical indicators are also adding pressure. Gold’s 200-day moving average recently fell below its 50-day moving average—a pattern known as a “death cross” among traders, often interpreted by some investors as a signal that a longer-term downtrend may be forming.
