Gold slips below $3,315; UAE buyers cautiously eye Dh373 price level

Dubai: Gold prices dipped worldwide on Tuesday, trading near $3,312 per ounce as investors awaited progress on US-China trade talks.

The first day of negotiations in London showed positive signals, with Washington considering easing technology export restrictions if China relaxes rare earth shipment limits—factors easing safe-haven demand.

Despite the short-term dip, the outlook remains constructive. UBP analysts highlight that developed economies’ ongoing deficit spending and rising debt support gold’s role as an inflation hedge. Their forecast shows gold climbing steadily: $3,400 by June 2025, $3,600 by September, $3,800 by December, and reaching $4,000 by March 2026.

In Dubai, 24K gold is priced just above Dh400 per gram, while 22K trades near Dh373 per gram as of June 10 evening. Retailers note steady buying, with potential for minor price softening if global spot gold nears $3,200. (Check live Dubai gold rates here.)

UBP also points to real interest rates and inflation trends as key drivers; current market conditions suggest gold’s fundamental support remains strong despite recent volatility. Meanwhile, global central banks, especially China’s, continue to stockpile gold, and ETF demand remains healthy.

For UAE buyers, Dh373 per gram for 22K gold is an attractive level, with Dh400+ for 24K reflecting premium quality. A dip closer to Dh360–Dh365 could offer an even better entry, but major price drops are unlikely as inflation and debt concerns persist.

Looking ahead, this week’s US Treasury auctions will be closely watched. Weak demand there could fuel further safe-haven flows into gold, reinforcing its positive medium-term outlook.