Dubai gold buyers get another price drop after June’s steep fall
Dubai gold rates are down more than Dh53 a gram from this month’s peak
Dubai: Gold prices in Dubai opened lower on Monday morning, giving jewellery buyers another price drop after a volatile month that saw rates swing sharply from record highs to their lowest levels in weeks.
The 24-karat variety stood at Dh489.25 per gram on Monday morning, down from Dh492.75 on Sunday. The crowd favourite 22-karat variety was priced at Dh453, compared with Dh456.25 a day earlier.
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The latest drop means 24-karat gold is now Dh53.25 per gram lower than its June 2 level of Dh542.50, while 22-karat gold has fallen Dh49.25 from Dh502.25 during the same period. So, buying 10 grams of 22-karat jewellery, the price difference from the month’s peak is now nearly Dh492 before making charges and VAT.
June rally gives way to sharp correction
Dubai gold prices started the month at elevated levels, with 24-karat at Dh539.75 on June 1 and rising to Dh542.50 the next day. The 22-karat rate also crossed Dh500 per gram in the first two days of the month, keeping jewellery buyers cautious.
Prices eased only slightly on June 3 and June 4, but the first major fall came on June 5, when 24-karat dropped to Dh522.50 and 22-karat slipped to Dh483.75. Rates remained around those levels for several days before another sharp move lower on June 10, when 24-karat fell to Dh492.50 and 22-karat dropped to Dh456.
The market recovered briefly in the middle of the month, with 24-karat moving back above Dh520 on June 15 and June 16. That rebound did not last, and prices moved lower again in the final week of June.
Buyers see better entry point
Monday’s opening rate is close to the lowest level of the month. The lowest 24-karat price in June was Dh486 on June 25, while 22-karat touched Dh450 on the same day.
That has made the final week of June more attractive for UAE residents who had delayed purchases when prices were above Dh520 and Dh530 per gram earlier in the month. The correction is also important for wedding buyers and families making larger jewellery purchases, because even small per-gram moves can change the final bill meaningfully once making charges are added.
Global gold weakens near $4,000
Internationally, gold declined to near $4,000 an ounce after the US and Iran traded attacks, putting pressure on a ceasefire that had earlier helped energy prices fall to pre-war levels.
Spot gold fell as much as 0.9% after rising 1.6% on Friday. Oil prices advanced after a tanker carrying Qatari crude was hit during weekend attacks that disrupted shipping through the Strait of Hormuz.
The two sides have since agreed to halt the attacks and meet on Tuesday in Doha, Axios reported, citing unidentified US officials.
Gold has also come under pressure from the interest-rate outlook. US inflation data came in high but broadly within analyst estimates, while Treasury yields dipped after the US personal consumption expenditures price index rose 0.4% in May from the previous month.
Gold is down about 23% since the US and Israel launched strikes on Iran in late February, with higher energy prices feeding inflation concerns and raising expectations that central banks could keep rates higher for longer. That is usually negative for bullion because gold does not offer interest income.
- With inputs from Bloomberg.
