Dubai gold prices retreat from Dh500 mark after steep midweek jump
Dubai gold price today sees 24K drop to Dh496.25, 22K at Dh459.75
Dubai: Gold buyers in Dubai saw prices retreat below the Dh500 mark on Thursday morning, following a strong surge that pushed the 24-karat rate above the threshold during the previous session.
The 24-karat variety stood at Dh496.25 at 8.53 am on Thursday, down Dh4.50 from Wednesday’s rate of Dh500.75. The 22-karat rate declined by Dh4 to Dh459.75 from Dh463.75 during the same period.
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The pullback followed a Dh8.75 increase in the 24-karat rate on Wednesday, when it climbed from Dh492 to Dh500.75. The 22-karat rate had risen by Dh8.25 from Dh455.50 to Dh463.75.
Dubai gold moves through a wide range in July
Gold prices in Dubai have recorded several significant swings since the beginning of July, with the 24-karat rate moving between Dh481.50 and Dh503.
The month began with 24-karat gold priced at Dh489.75 before climbing above Dh500 on July 3. It reached Dh503 on July 4 and remained at that level on July 5, marking the highest rate recorded during the month so far.
Prices then eased to Dh499 on July 6 and Dh490 on July 8, before briefly rising to Dh497.25 on July 9. The rate remained close to Dh496.50 on July 11 and July 12 before dropping to Dh483.50 on July 13.
A further decline took the 24-karat price to Dh481.50 on July 16 and July 17, the lowest level recorded during the month. Prices began recovering over the following sessions, rising from Dh483 on July 20 to Dh492 on July 21 and Dh500.75 on July 22.
The 22-karat rate followed a similar pattern, beginning July at Dh453.50 before reaching a monthly high of Dh466 on July 4 and July 5. It later fell to Dh446 on July 16 and July 17 before recovering to Dh463.75 on Wednesday.
Thursday’s decline left the 24-karat rate Dh6.75 below its monthly high, while the 22-karat variety remained Dh6.25 below its peak.
Global gold holds recent gains
Gold held on to recent gains in global markets, supported by dip-buying even after rising oil prices renewed concerns about inflation and the direction of US interest rates.
Bullion was trading at around $4,130 an ounce after gaining 3% over the previous two days. Buyers returned to the market following an earlier decline, while continued hostilities in the Middle East kept demand for the metal supported.
Oil prices climbed to multiweek highs, raising concerns that higher energy costs could add to inflationary pressure in the US and influence the Federal Reserve’s interest-rate decisions.
The US and Iran have indicated that they are not ready to resume negotiations following a fresh escalation in attacks. Strikes were also reported against tankers travelling through the Red Sea, marking the first such incidents since the conflict began in late February.
Interest-rate decision remains in focus
Traders are assessing the effect of rising energy prices alongside weaker US economic data before the Federal Reserve’s meeting next week.
Higher borrowing costs tend to weigh on gold because the metal does not pay interest. Market participants remain divided over whether the US central bank will raise rates, while limited forward guidance under Fed Chair Kevin Warsh has added to uncertainty.
Gold largely moved in the opposite direction to US Treasury yields during the conflict before holding above $4,000 this week, a level viewed by some traders as an important area of support.
The metal remains around 20% below the levels recorded before the US and Israel launched strikes on Iran in late February. Gold had reached a record high of nearly $5,600 an ounce during the previous month after a multiyear rally.
- With inputs from Bloomberg.
