Dubai gold prices fall below Dh500 amid volatile global trading
Dubai gold prices have fallen below the Dh500 mark for 24-karat gold following a volatile trading period in global markets, marking a sharp monthly decline and offering lower prices for jewellery buyers in the United Arab Emirates.
The 24-karat gold rate was recorded at Dh491.75 per gram, while 22-karat gold stood at Dh455.25 per gram, reflecting a continued downward trend after earlier highs at the beginning of June, News.Az reports, citing Gulf News.
Gold prices in Dubai have dropped nearly Dh48 per gram since the start of the month for 24-karat gold. Earlier in June, prices peaked above Dh540 before gradually easing through a series of daily declines.
Analysts said the decline followed a period of global volatility driven by geopolitical tensions, changes in United States economic data and shifting expectations over interest rates. International bullion markets reacted to renewed United States strikes on Iran and concerns over potential disruptions in the Strait of Hormuz, which affected oil supply expectations and inflation forecasts.
Market commentary cited by Pepperstone Research Strategist Ahmad Assiri indicated that gold’s weakness reflects shifting investor focus toward United States monetary policy, with recent inflation and employment data strengthening expectations that the Federal Reserve may maintain a restrictive stance on interest rates.
Assiri added that higher energy prices linked to Middle East tensions have reinforced inflation concerns, reducing traditional safe-haven demand for gold and increasing pressure on bullion prices.
The global gold market remains sensitive to United States inflation data, Federal Reserve policy signals, oil price movements and geopolitical developments in the Middle East, with analysts noting that further volatility is likely in the near term.
By Leyla Şirinova
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