Dubai gold buyers get relief as prices stay below June highs
24K gold slips to Dh489.25 as UAE rates stay well below June’s peak
At 9:30 am, 24-karat gold stood at Dh489.25 per gram, down from Dh489.75 on Wednesday. The 22-karat variety fell to Dh453 from Dh453.50.
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The decline was moderate, but it keeps Dubai gold prices close to the lower end of the month’s range and far below the levels seen at the start of June.
Prices still below June highs
Dubai gold rates started June at elevated levels, with 24-karat gold at Dh536 on June 3 before rising to Dh538.50 the next day. Prices then moved lower through the month, although the drop was not in a straight line.
The 24-karat variety stayed above Dh520 for several days in early and mid-June, including Dh522.50 on June 5, Dh521.75 on June 7 and Dh522.25 on June 16. The 22-karat variety also held near Dh483 during those sessions.
Rates began easing more clearly in the second half of the month. The 24-karat variety fell from Dh509.25 on June 18 to Dh500 on June 19 and Dh498.75 on June 23, while 22-karat gold moved from Dh471.50 to Dh463 and then Dh461.75 over the same period.
By late June, prices had dropped below Dh490 for several sessions. The 24-karat variety was at Dh486.50 on June 24, Dh486 on June 25, Dh485.75 on June 29 and Dh485.25 on June 30. Prices rose slightly to Dh489.75 on July 1 before dipping again on Thursday.
Global gold rebounds
The local decline came even as global gold prices extended gains after comments from US Federal Reserve Chairman Kevin Warsh eased concerns that the central bank may raise interest rates again this year.
Bullion rose as much as 0.9% to trade around $4,066 an ounce after closing 0.6% higher in the previous session. The move came after two days of declines.
Warsh’s remarks at the European Central Bank forum in Portugal were seen as less hawkish than expected, easing some concern about the Fed’s next steps after the Iran war lifted energy prices and inflation indicators. Higher interest rates usually weigh on gold because the metal does not offer a yield.
Warsh also repeated that the Fed remains committed to price stability and bringing inflation back to its 2% target.
Buyers watching for direction
The next signal for gold will come from US jobs data due Thursday, which could give markets a clearer view of the Fed’s policy path.
Recent US data has been mixed. Manufacturing activity grew for a sixth straight month in June, although at a slower pace, while private-sector hiring stayed firm and marked the best three-month stretch in more than a year.
- With inputs from Bloomberg.
