UAE gold prices hit June low after Dh64 fall from peak

Dubai: Gold prices in the UAE fell to their lowest level this month on Tuesday morning, giving shoppers another price break after a volatile June that saw rates swing by more than Dh60 per gram. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

The 24-karat variety stood at Dh478.50 a 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 had started 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. That rebound did not hold, with rates easing again in the final week of June as international bullion prices came under pressure.

By June 22, 24-karat gold was at Dh506, before falling steadily through the last week. Tuesday’s rate of Dh478.50 is the lowest recorded so far this month.

Global gold falls below $4,000

The decline in UAE rates followed another fall in international bullion, with spot gold dropping below $4,000 an ounce as investors tracked fresh uncertainty around US-Iran talks and the future of 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 almost 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 planned to proceed with oversight of traffic through the Strait of Hormuz, a position opposed by the US, Europe and Gulf Arab nations.

Dollar, rates weigh on bullion

Gold has lost around 25% since the war began in late February, with the metal breaking below key technical levels including the 200-day moving average.

Although oil prices have cooled after an earlier spike, inflation concerns remain high enough for central banks to keep borrowing costs elevated for longer. That is usually negative for gold because the metal does not pay interest.

A stronger dollar has also added pressure, making gold more expensive for buyers using other currencies. A gauge of the US currency has risen more than 2% this month.

- With inputs from Bloomberg.