UAE gold buyers get price relief as Dubai rates hit June low

Dubai: Dubai gold prices fell on Monday morning, taking local rates to their lowest level so far this month after bullion extended losses in global markets. (Check live prices here.)

The 24-karat variety was priced at Dh519.75 per gram at 9.17am on Monday, down from Dh521.75 on Sunday, while 22-karat gold slipped to Dh481.25 from Dh483. The latest move means 24-karat gold has dropped Dh22.75 per gram since June 2, when it stood at Dh542.50, while 22-karat gold has fallen Dh21 from Dh502.25 over the same period.

The price movement is a clear reversal from the early June highs, when Dubai gold prices were still trading above Dh539 per gram for 24-karat and around Dh500 for 22-karat. After holding steady over the weekend, prices resumed their fall on Monday, giving jewellery buyers in the UAE a lower entry point after weeks of elevated rates.

Global pressure weighs on local prices

Internationally, gold extended its decline after renewed military action between Israel and Iran raised concerns over the direction of the conflict, while stronger US economic data kept pressure on expectations for interest rates.

Bullion fell near the $4,300 an ounce mark after losing nearly 5% last week, with traders reassessing safe-haven demand, the outlook for energy prices and the path of monetary policy. The selloff came after Israel said it struck Iranian targets in response to missile attacks by Tehran, adding further uncertainty to a fragile ceasefire in the region.

Ahmad Assiri, Research Strategist at Pepperstone, said gold remained under pressure, “trading around the $4,300 per ounce mark and extending the bearish sentiment that emerged at the end of last week.”

“The metal is increasingly eyeing the $4,100 region as the next meaningful support level particularly as risk appetite continues to be subdued across broader markets,” Assiri said.

Buyers get some price relief

The latest fall will be closely watched by UAE shoppers planning jewellery purchases, especially after prices moved above Dh540 per gram earlier this month for 24-karat gold. On June 1, 24-karat gold was at Dh539.75 and 22-karat at Dh500, before prices briefly rose to Dh542.50 and Dh502.25 on June 2.

Prices then eased to Dh536 for 24-karat and Dh496.25 for 22-karat on June 3, before climbing again on June 4 to Dh538.50 and Dh498.50. The downward move became clearer from June 5, when 24-karat gold slipped to Dh522.50 and 22-karat to Dh483.75, before settling at Dh521.75 and Dh483 through June 6 and June 7.

Monday’s drop to Dh519.75 and Dh481.25 now puts both categories at their lowest quoted levels for June.

Rates outlook stays in focus

Gold also came under pressure after stronger US jobs data increased expectations that the Federal Reserve could keep borrowing costs higher for longer or raise rates in 2026. Higher bond yields and a stronger dollar tend to weigh on gold, which is priced in the US currency and does not offer yield.

The Middle East conflict has added another layer of uncertainty because disruption to energy flows through the Strait of Hormuz has pushed oil prices higher and raised inflation concerns. Any renewed inflation pressure could make central banks more cautious on rate cuts, which would be a headwind for bullion.

Still, long-term official demand remains a support for gold. Traders are also assessing another round of purchases by the People’s Bank of China, which added about 10 tonnes to its reserves last month, its highest monthly total since 2024 and the 19th straight month of buying.

That leaves gold caught between short-term selling pressure and longer-term central bank demand.

- With inputs from Bloomberg.