Gold prices in Dubai slip further as markets track dollar strength, not war tensions
Retail prices ease even as Strait tensions rise and rate outlook firms
Dubai: Gold prices in Dubai edged lower again on Tuesday morning, signalling that global monetary cues — not geopolitical tensions from the ongoing US-Israel conflict involving Iran — are continuing to drive bullion markets.
Despite heightened uncertainty in the region, local rates softened, extending Monday’s decline and reinforcing a broader trend where interest rate expectations and currency movements are outweighing safe-haven demand.
In Dubai, 24-carat gold was priced at Dh577.00 per gram, down from Dh580.50 yesterday. The 22-carat variant slipped to Dh534.25 from Dh537.50.
This marks a continued easing after Monday’s drop, suggesting that buyers are seeing some relief after last week’s elevated levels, though the pullback remains gradual rather than sharp.
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The trend mirrors Monday’s market direction, when prices fell more noticeably amid a global dip in bullion below the $4,800 mark.
While geopolitical tensions — particularly around Iran and key oil routes — remain elevated, markets are showing a clear preference to respond to macroeconomic signals, especially movements in the US dollar and interest rate outlook.
Saudi Arabia, India rates
Across the region, Saudi gold prices were unchanged, indicating a pause in momentum. The 24-carat rate held steady at 596.00, while 22-carat gold remained at 544.00. This flat trend suggests that the earlier global pullback has already been priced in, with little fresh catalyst to push prices in either direction in the Saudi market.
In India, gold prices were also stable. The 24-carat rate stood at ₹155,290 per 10 grams, while 22-carat gold was at ₹142,350 per 10 grams — both unchanged from the previous session. The lack of movement reflects a similar wait-and-watch approach among buyers, particularly as global signals remain mixed and currency factors play a larger role.
Internationally, gold prices continued to ease, with spot gold down around 0.5 per cent to $4,795 per ounce, extending losses from the previous session. A slightly stronger US dollar has made gold more expensive for holders of other currencies, adding downward pressure.
Markets are closely watching whether the US and Iran will move forward with potential peace talks, which could influence oil prices and broader inflation expectations. Analysts have said that while geopolitical risks remain a supporting factor, gold’s recent trajectory has been more closely tied to shifts in the dollar and bond yields.
After a three-week rally driven largely by softer inflation data and declining yields, gold now appears to be entering a consolidation phase. Any rebound in the dollar or US Treasury yields could weigh further on prices, suggesting that near-term movements may remain volatile but range-bound unless a clear macro trigger emerges.
*With inputs from Reuters
