Dubai gold now down Dh55 in a week after dropping by Dh10 for third day

Dubai: Gold prices in Dubai continued their slide on Tuesday, marking the third straight day of declines and bringing the weekly drop to Dh55 per gram.

The metal lost more ground and slipped further below the Dh500 level as global bullion prices weakened and local traders adjusted rates to reflect softer international demand.

After rates opened at Dh481.25 per gram for 24-karat gold on Tuesday morning, it dropped further to Dh470.50 by afternoon, before recovering half as much to Dh474.75 by evening.

Similarly, for the crowd favourite 22-karat gold, rates traded at Dh445.50 per gram in the morning, before falling to Dh435.75 by afternoon, before ending the day at Dh439.50 by evening.

(Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

The decline reflects a broader pullback in global bullion markets after a sharp sell-off on Monday, when gold dropped below $4,000 an ounce. Prices dropped 1.6% to $3,949 after tumbling 3.2% in the previous session. The recovery remained modest as investors digested signs of progress in US-China trade negotiations, which reduced the immediate appeal of safe-haven assets.

Negotiators from Washington and Beijing said they had reached initial agreements covering tariffs and export controls. The development lifted risk sentiment, pushing US Treasury yields higher and weighing on demand for gold, which offers no interest return.

Focus turns to the Fed

Investor attention now shifts to the Federal Reserve, which is expected to cut rates by 25 basis points at the conclusion of its two-day policy meeting on Wednesday. The move would mark the second rate reduction in succession as the central bank seeks to manage slowing growth and inflation pressures.

Markets are also tracking developments around the selection of the next Fed chair. Treasury Secretary Scott Bessent confirmed that five candidates are being considered to succeed Jerome Powell when his term ends in May next year. The shortlist includes current Fed board members Christopher Waller and Michelle Bowman, former Governor Kevin Warsh, White House economic adviser Kevin Hassett, and BlackRock executive Rick Rieder.

With gold prices now consolidating after months of gains, analysts say sentiment could remain fragile until there is more clarity on US policy and global trade direction. For now, investors appear content to stay cautious and watch whether the metal can hold above current support levels.