Dubai gold prices hit lowest level this month as global markets swing
Dubai gold prices ease to monthly low while global bullion markets remain volatile
Dubai: Gold prices in Dubai slipped to their lowest level this month on Monday morning, giving buyers a brief window of relief after several weeks of elevated prices driven by global market turmoil. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)
At 10.15 am on Monday, the price of 24-karat gold stood at Dh604.25 per gram, down from Dh604.75 on Sunday. The 22-karat variety traded at Dh559.50, compared with Dh560 the previous day.
The latest drop follows a steady easing from the peaks seen earlier in March when geopolitical tensions pushed bullion sharply higher.
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Month marked by sharp swings
Price movements through March show how quickly the market has shifted within a short span. Gold opened the month at elevated levels, with 24K priced at Dh636 on March 1 and Dh641 on March 2, while 22K traded at Dh589 and Dh593.50 during the same period.
Prices soon began to move lower, with 24K falling to Dh614.25 on March 3 and Dh619.25 on March 4, while 22K eased to Dh568.75 and Dh573.50. Midweek trading saw further shifts, including Dh611.50 for 24K and Dh566.25 for 22K on March 5, followed by Dh620 and Dh574.25 on March 6.
Gold briefly strengthened again during the second week of the month, reaching Dh623.25 for 24K and Dh577.25 for 22K on March 7 and March 8. Prices softened the next day, with 24K at Dh615.75 and 22K at Dh570 on March 9, before climbing again to Dh628 and Dh581.50 on March 10.
Momentum shifted once more in the following sessions. The 24-karat price slipped to Dh623.75 on March 11 and Dh617.50 on March 12, while 22K moved from Dh577.50 to Dh571.75 across the same period. Gold then eased further to Dh606.50 for 24K and Dh561.75 for 22K on March 13, levels that held largely steady through March 14 and March 15 before Monday’s decline pushed prices to the lowest point recorded this month.
Global markets remain volatile
International bullion markets have been moving in wide ranges as investors try to assess the impact of the ongoing conflict in the Middle East.
Gold has traded around $5,000 an ounce, falling at times by about 1% before recovering part of those losses. Markets remain highly sensitive to developments in the region, particularly disruptions to global oil flows.
Military activity has intensified in recent days. Over the weekend the United States attacked Iran’s main oil export hub while Tehran continued strikes on energy infrastructure across parts of the Gulf.
Shipping traffic through the Strait of Hormuz, the corridor that normally carries roughly one fifth of the world’s oil and liquefied natural gas supplies, remains heavily disrupted. Energy prices have surged as a result, creating fresh uncertainty across commodity and currency markets.
Interest rate outlook adds pressure
Monetary policy expectations have also shifted as the conflict drags on.
Recent US consumer spending data showed economic activity slowed earlier this year, while consumer sentiment has slipped to a three-month low amid fears that higher gasoline prices could squeeze household budgets.
Financial markets now see almost no chance of an interest rate cut at the upcoming Federal Reserve meeting. Higher borrowing costs generally weigh on gold because the metal does not generate interest income.
- With inputs from Bloomberg.
