Dubai: Gold Prices Plunge, Giving Reprieve To Jewellery Shoppers

Gold jewellery prices were steady on Tuesday morning after plunging Dh4.5 per gram on Monday as precious metal fell below $4,400 per ounce.

At 9am UAE time, 24K was trading at Dh409.0 per gram, up from Dh408.5 per gram at the close of the markets, but down from Dh413 per gram at the opening of the markets on Monday.

Among the other variants, 22K, 21K and 18K opened at Dh378.75, Dh363.25 and Dh311.25 per gram, respectively, giving a reprieve to jewellery buyers ahead of the summer travel season when residents opt to buy precious metal for gits.

Spot gold was trading at $3,392.6 per ounce, down 0.15 per cent. It was trading at $3,418.7 per ounce on Tuesday morning.

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Konstantinos Chrysikos, head of customer relationship management at Kudotrade, said gold prices pulled back on Monday as traders take profits, though the broader bullish narrative remains intact.

“The precious metal could continue to find support in geopolitical risks. Tensions in the Middle East remained elevated over the weekend, as Israel and Iran exchanged strikes. Continued risks of escalation could reinforce demand for safe-haven assets. In Eastern Europe, tensions also remain, contributing further to global risk aversion,” he said.

On the monetary front, Chrysikos said attention now turns to the upcoming US Federal Reserve policy meeting.

“While the Fed is widely expected to keep rates steady, last week's softer-than-expected inflation data strengthened market conviction that rate cuts could begin as early as September. This outlook could weigh on Treasury yields and benefit non-yielding assets like gold,” he added.

Meanwhile, uncertainty surrounding US trade policy also lingers. President Trump is expected to finalise new tariff measures in the coming weeks, and any escalation in trade tensions could further bolster bullion demand.

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