Gold prices drop in early trade in Dubai; 22K slips below Dh490 per gram
Gold prices fell again in Dubai on Tuesday morning, following a recovery on Monday evening.The 24K gold price dropped to Dh522.5 per gram at the opening on Tuesday, down from Dh530.75 per gram on Monday.The precious metal’s other variants – 22K, 21K, 18K, and 14K – slipped to Dh483.75, Dh464.00, Dh397.75, and Dh310.25 per gram, respectively.Spot gold was trading at $4,343.15 per ounce, down 1.4 per cent. Silver plunged 3.5 per cent to $66.5 (Dh244.31) an ounce.Stay up to date with the latest news. Follow KT on WhatsApp Channels.Gold fell on Tuesday due to the strengthening of the US dollar and reduced expectations of interest rate cuts by the US Federal Reserve.On Monday, gold prices dropped another six per cent following last week’s decline, continuing to reflect challenging macroeconomic conditions.Traditionally viewed as a safe-haven asset during periods of geopolitical uncertainty, gold is currently facing headwinds from rising inflation expectations and a rapidly evolving interest rate outlook. The escalation of conflict in the Middle East has driven oil prices higher, fuelled concerns about inflation, and prompted markets to reassess their monetary policy expectations.“Gold is currently caught between two opposing forces. While geopolitical tensions would support demand for safe-haven assets, the inflationary impact of rising energy prices is driving expectations of higher interest rates, which is weighing heavily on gold,” said Jakub Rochlitz, market analyst at eToro, an investment and social trading company.“What we are seeing resembles a classic liquidation phase, with investors taking profits after last year’s strong rally and repositioning in response to changing macro conditions. In the near term, volatility is likely to remain elevated as markets adjust to these dynamics,” he added.UAE designers turn jewellery into meaningful Eid gifts How Indian fine jewellery is finding a new home in the GulfDiwali jewellery trends in 2025: Why convertibles, hand chokers are replacing heavy gold
Gold prices fell again in Dubai on Tuesday morning, following a recovery on Monday evening.
The 24K gold price dropped to Dh522.5 per gram at the opening on Tuesday, down from Dh530.75 per gram on Monday.
The precious metal’s other variants – 22K, 21K, 18K, and 14K – slipped to Dh483.75, Dh464.00, Dh397.75, and Dh310.25 per gram, respectively.
Spot gold was trading at $4,343.15 per ounce, down 1.4 per cent. Silver plunged 3.5 per cent to $66.5 (Dh244.31) an ounce.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Gold fell on Tuesday due to the strengthening of the US dollar and reduced expectations of interest rate cuts by the US Federal Reserve.
On Monday, gold prices dropped another six per cent following last week’s decline, continuing to reflect challenging macroeconomic conditions.
Traditionally viewed as a safe-haven asset during periods of geopolitical uncertainty, gold is currently facing headwinds from rising inflation expectations and a rapidly evolving interest rate outlook. The escalation of conflict in the Middle East has driven oil prices higher, fuelled concerns about inflation, and prompted markets to reassess their monetary policy expectations.
“Gold is currently caught between two opposing forces. While geopolitical tensions would support demand for safe-haven assets, the inflationary impact of rising energy prices is driving expectations of higher interest rates, which is weighing heavily on gold,” said Jakub Rochlitz, market analyst at eToro, an investment and social trading company.
“What we are seeing resembles a classic liquidation phase, with investors taking profits after last year’s strong rally and repositioning in response to changing macro conditions. In the near term, volatility is likely to remain elevated as markets adjust to these dynamics,” he added.
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