Dubai gold slips again, down Dh4 from Thursday levels

Dubai: Dubai gold prices slipped on Friday morning, extending a cautious trend even as global markets point to a stronger weekly finish. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

At 9:19 am, 24K gold was priced at Dh573.25, down from Dh577.25 a day earlier. The 22K variant fell to Dh530.75 from Dh534.50, reflecting a modest pullback in local rates.

The move comes at a time when international gold prices remain supported, suggesting the local dip is more of a short-term adjustment than a broader reversal.

Weekly gains hold despite volatility

Globally, bullion is heading towards a third straight weekly gain, holding near $4,760 an ounce and tracking a weekly rise of nearly 2%.

Support is coming from continued central bank buying and expectations around diplomatic engagement tied to the Iran conflict. Market focus is shifting towards talks scheduled in Islamabad, where US Vice President JD Vance is expected to meet Iranian officials over the weekend.

At the same time, uncertainty has not faded. Fresh warnings from President Donald Trump around shipping through the Strait of Hormuz and continued regional strikes have kept geopolitical risk elevated, a factor that typically supports gold demand.

Inflation risks complicate outlook

The inflation backdrop remains a key variable shaping gold’s direction. Rising energy costs linked to the conflict have increased expectations that central banks may delay rate cuts or keep borrowing costs higher for longer.

That dynamic tends to weigh on gold, which does not offer yields. However, slowing growth risks tied to a prolonged conflict could eventually tilt policy in the opposite direction, supporting bullion.

Latest data already points to strain. US consumer spending showed limited growth in February, and markets are awaiting the March inflation print later Friday, which is expected to show the sharpest monthly increase since mid-2022.

Central bank demand offers support

Institutional buying continues to provide a floor for prices. Poland is pushing ahead with plans to lift gold reserves to 700 tonnes, while China added around five tonnes in March, marking its biggest monthly purchase in over a year.

This steady accumulation is helping offset some of the pressure from higher rate expectations and investor repositioning.

How prices moved this month

Dubai gold prices have shown a steady upward climb through early April before the latest dip. The month opened near Dh573 for 24K gold, followed by a gradual easing towards the Dh561 level by April 6. Prices then rebounded sharply, touching Dh577 on April 9, before slipping back to Dh573.25 on Friday. The pattern reflects a market that is reacting quickly to global cues, with short bursts of gains followed by mild corrections rather than a clear directional trend.

The latest dip offers a brief window for jewellery buyers, particularly those tracking short-term price movements. However, the broader trend remains tied to global factors including geopolitical developments, inflation data and central bank activity, all of which continue to inject volatility into gold markets.

- With inputs from Bloomberg.