Dubai gold prices fall again, 24K drops Dh8.25 in two days
24K fell to Dh522.50 on Wednesday, while 22K eased to Dh483.75
Dubai: Dubai gold prices moved lower on Wednesday morning, extending their retreat from the start of the week and bringing local rates down from some of the highest levels recorded so far this month.
The 24-karat variety was priced at Dh522.50 per gram, down Dh3.50 from Dh526 on Tuesday. The 22-karat rate fell to Dh483.75 from Dh487, a decline of Dh3.25 per gram.
The latest move leaves 24K gold Dh8.25 below Monday's Dh530.75 level, while 22K has fallen Dh7.75 from Dh491.50 over the same period.
Prices retreat from August highs
Gold prices in Dubai have moved through a wide range during August. The 24K rate began the month at Dh487.25 before climbing above Dh500 and reaching Dh533.25 on August 12, the highest level among the rates provided for the month.
Wednesday's Dh522.50 rate is Dh10.75 below that August 12 level, although it remains Dh35.25 higher than the price recorded on August 1.
The 22K variety followed a similar path, rising from Dh451.25 at the start of August to Dh494 on August 12 before easing back to Dh483.75 on Wednesday.
Global gold recovers after Tuesday drop
Global bullion prices moved higher on Wednesday after a sell-off in US bonds eased, reducing some of the pressure that had pushed gold down by almost 2% in the previous session.
Gold rose by as much as 0.6% to trade above $4,360 an ounce after recording its biggest decline in almost a month on Tuesday. US Treasuries steadied after a sell-off had pushed yields on 30-year notes to their highest level in almost two decades.
Higher bond yields and borrowing costs can weigh on gold because the metal does not pay interest.
Gold has recovered in recent weeks to trade around the $4,400-an-ounce level, supported by renewed investor demand and central-bank buying, including purchases from China.
A Bank of America fund manager survey released on Tuesday showed the share of respondents who viewed gold as undervalued had reached its highest level since March 2023.
Uncertainty surrounding US-Iran relations remains another factor for the market. US President Donald Trump said on Tuesday that no talks were taking place with Tehran, while the memorandum of understanding signed by the two countries in June has expired without an extension.
Oil prices have risen amid uncertainty over the Strait of Hormuz. Higher energy-driven inflation can increase pressure on the US Federal Reserve to raise interest rates, which can weigh on gold prices.
- With inputs from Bloomberg.
