Dubai gold rates drop below Dh500: 24K gold falls Dh12 per gram in one day

Dubai: Gold shoppers in Dubai are seeing a sharp drop in gold prices today, with 24-carat gold falling below the Dh500 per gram mark as global bullion markets come under pressure from a stronger US dollar and expectations of higher US interest rates.

(Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

The price of 24-carat gold in Dubai fell to Dh496.75 per gram on Friday, down from Dh509.25 per gram yesterday, marking a decline of Dh12.50 per gram. Meanwhile, 22-carat gold dropped to Dh460 per gram, compared with Dh471.50 at the previous close.

For consumers in Dubai, the decline could translate into noticeable savings on jewellery purchases. A customer buying a 20-gram gold piece, for example, would see a difference of more than Dh250 in the gold value alone compared with yesterday’s rates, before making charges and other costs are added.

Gold retailers and market watchers closely track Dubai rates as the emirate remains one of the world’s key gold trading and jewellery hubs, attracting both local buyers and international visitors.

Analysts said the latest fall is largely driven by international market movements rather than local demand trends.

“Gold’s rally on the back of the US-Iran peace deal proved short-lived. The resurgent dollar, powered by the Fed’s newly hawkish tone, has stolen the spotlight,” said Tim Waterer, chief market analyst at KCM Trade.

The stronger US dollar has made gold more expensive for buyers holding other currencies, while expectations of higher interest rates have reduced demand for the non-yielding asset.

For jewellery buyers, lower prices may provide an opportunity, but analysts warn that gold remains highly sensitive to global developments.

Gold prices have experienced strong volatility in recent months, moving higher during periods of geopolitical uncertainty before coming under pressure as markets reassess interest rate expectations.

Consumers looking to buy gold jewellery in Dubai often monitor daily price movements, especially before major purchases, as even small changes in the per-gram rate can significantly affect the final bill.

Gold prices in India also moved lower, following the international trend.

The price of 24-carat gold in India declined to ₹145,850 per 10 grams today, compared with ₹149,510 per 10 grams yesterday.

For 22-carat gold, prices fell to ₹133,700 per 10 grams, from ₹137,050 per 10 grams yesterday.

Indian buyers, among the largest gold consumers globally, are closely watching international prices, currency movements and domestic demand before making purchases.

International gold prices stood at $4,138.81 per ounce, down $87.50 or 2.07 per cent.

Gold was heading towards its third consecutive weekly decline as a firm US dollar and a more hawkish Federal Reserve outlook weighed on investor demand.

The dollar climbed to a one-year high, reducing gold’s appeal for buyers outside the US. Gold also faces pressure when interest rates rise because it does not provide interest income.

Goldman Sachs lowered its year-end gold price forecast to $4,900 per ounce, from its earlier estimate of $5,400, after pushing back expectations for US rate cuts.

However, analysts said continued central bank buying and demand for gold as a hedge against economic uncertainty could continue supporting prices over the longer term.

With inputs from Reuters, Bloomberg