Gold prices in Dubai decline again, with 24K falling to Dh478.50—the month’s lowest so far.
Dubai: Gold prices in the UAE fell to their lowest level this month on Tuesday morning, offering shoppers some relief after a volatile June that saw rates fluctuate by more than Dh60 per gram.
The 24-karat variety stood at Dh478.50 per gram at 8:36 am, down from Dh485.75 on Monday. The 22-karat variety fell to Dh443, compared with Dh449.75 a day earlier.
The latest drop means 24-karat gold is now Dh64 lower than its June 2 level of Dh542.50, when prices were near their monthly peak. The 22-karat rate has fallen by Dh59.25 from Dh502.25 over the same period.
Prices retreat after mid-month rebound
Gold began June on a strong note, with 24-karat trading above Dh539 on June 1 and rising to Dh542.50 the next day. Prices then eased sharply by June 10, when the 24-karat rate slipped to Dh492.50.
The market recovered briefly in the middle of the month, with 24-karat gold climbing back above Dh522 on June 16. However, the rebound did not hold, and rates eased again in the final week of June as international bullion prices came under pressure.
By June 22, 24-karat gold had fallen to Dh506 before continuing its steady decline through the last week. Tuesday’s rate of Dh478.50 marks the lowest level recorded so far this month.
Global gold falls below $4,000
The drop in UAE rates mirrored a decline in international bullion, with spot gold slipping below $4,000 an ounce as investors reacted to renewed uncertainty around US-Iran talks and the outlook for shipping through the Strait of Hormuz.
Gold fell as much as 1.8% to $3,943 an ounce, its lowest intraday level since November, after losing nearly 2% in the previous session. Washington said talks with Tehran were due to begin in Doha on Tuesday, while Iran said it would send a delegation of experts but ruled out direct negotiations.
Iranian Deputy Foreign Minister Kazem Gharibabadi also said Tehran plans to proceed with oversight of traffic through the Strait of Hormuz, a move opposed by the US, Europe and Gulf Arab states.
Dollar, rates weigh on bullion
Gold has fallen around 25% since the war began in late February, with the metal breaking below key technical levels, including its 200-day moving average.
Although oil prices have eased after an earlier spike, inflation concerns remain elevated enough for central banks to keep interest rates higher for longer. This typically weighs on gold, as the metal does not generate yield.
A stronger US dollar has also added pressure, making gold more expensive for buyers using other currencies. A gauge of the US currency has risen by more than 2% this month.
