Dubai gold buyers see some of the lowest rates in more than seven weeks

Dubai: Gold prices in Dubai remained under pressure on Tuesday, taking 24-karat gold below the Dh500 mark and giving buyers another window at lower prices after the steep declines seen in recent days.

At 12.45 pm on Tuesday, September 29, 24-karat gold was priced at Dh497.25 per gram, while 22-karat stood at Dh460.50.

Compared with Monday morning, when 24-karat opened at Dh505.50, buyers are now paying Dh8.25 less per gram. The price of 22-karat gold has fallen Dh7.50 from Monday morning's Dh468.

That translates into a saving of Dh66 on eight grams of 24-karat gold compared with Monday morning prices, before making charges and other costs are taken into account.

Gold has fallen from September highs

The latest prices extend a difficult month for gold after Dubai's 24-karat rate reached Dh542 per gram on September 3.

At Tuesday's level of Dh497.25, 24-karat gold is Dh44.75 per gram below that September high, a decline of about 8.3%.

The 22-karat rate has followed a similar path, falling from Dh502 on September 3 to Dh460.50 on Tuesday, a difference of Dh41.50 per gram.

Compared with the start of September, when 24-karat gold stood at Dh522, the price is Dh24.75 lower per gram.

Global gold recovers after seven-week low

International gold prices edged higher on Tuesday after hitting their lowest level in more than seven weeks on Monday.

Spot gold rose to around $4,144 an ounce on Tuesday after losing about 4% in the previous session. The decline came alongside rising US Treasury yields and expectations that the US Federal Reserve could raise interest rates again in October.

Markets were pricing in around a 70% chance of another Fed rate increase in October, while investors were also watching developments in the Middle East and their impact on oil prices and inflation.

Higher interest rates tend to weigh on gold because the metal does not pay interest, making yield-bearing assets more attractive to investors when borrowing costs rise.

Gold has lost almost 7% internationally during September despite trading as high as $4,510 an ounce earlier in the month. The recent decline has followed the Federal Reserve's first interest-rate increase since 2023 and expectations that further tightening could follow.