Dubai gold rates now down nearly Dh30 following global price plunge
Dubai rates fall to Dh614 per gram after global gold sell-off rattles metals markets
Dubai: Dubai gold rates fell sharply a day after hitting fresh records, dropping by nearly Dh30 by Tuesday evening, mirroring a price plunge recorded in global markets.
In the UAE, 24-karat rates dropped from Dh641 to Dh614 per gram on Tuesday, a Dh27 slide that mirrored a rapid pullback in international prices. 22-karat currently cost 568.75, down from Dh593 yesterday.
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Why is gold falling now?
Gold edged lower on Tuesday as a firmer dollar and reduced expectations of near-term interest rate cuts weighed on prices, with inflation concerns building amid a potentially prolonged Middle East conflict.
Spot gold fell as much as 5.6% to $5,029.59 an ounce, after touching a more than four-week high in the previous session.
“The move lower in gold appears to be driven by a flight to liquidity — a flight to cash. We have a strong dollar and bond yields trading higher,” noted Bob Haberkorn, senior market strategist at RJO Futures.
Will rates drop further?
Gold could extend its decline before finding a floor, analysts said, even as geopolitical tensions and tariff uncertainty continue to lend underlying support to bullion.
In a recent note, Heraeus, German technology group with a focus on precious and special metals, said past price cycles indicate the correction may not yet have run its course.
The firm pointed to the rally that peaked in late January, when gold advanced 30% in one month and 115% from the start of 2025, before pulling back sharply. Prices have since retraced about 70% of that drop.
The industry experts also added that geopolitical risks are supporting the metal, though whether gains can be sustained will depend on how the Gulf conflict is resolved and the terms of any settlement.
Risks cloud outlook
“However, this dip in prices is likely to be short-lived, and flight to safety flows driven by geopolitical risk should support higher gold and silver prices,” Haberkorn added.
The Iran conflict entered its fourth day, with explosions reported in Tehran and Beirut. A senior Iranian Revolutionary Guards official said on Monday that the Strait of Hormuz had been closed. Crude oil benchmarks rose more than 8% on Tuesday in response.
Damage to energy infrastructure and stalled tanker traffic have increased the risk of sustained strength in oil, gas and refined products, stoking inflation fears and pushing back expectations for rate cuts, said Fawad Razaqzada, market analyst at City Index and FOREX.com.
Although gold is widely viewed as a hedge against inflation and geopolitical turmoil, it typically benefits from lower interest rate environments because it does not generate yield.
Spot gold is up about 17% so far this year, following a 64% surge in 2025, driven by heightened global uncertainty.
