Gold Prices Continue To Trend Downward In Dubai In Early Trade

2026-03-13 04:13:40

(MENAFN- Khaleej Times) [Editor's Note: Follow Khaleej Times live blog amid US-Israel-Iran war for the latest regional developments.]

Gold prices continued to trend downward in Dubai on Friday, dropping over Dh2 per gram in early trade.

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The precious metal is heading downward due to a stronger dollar and lower expectations for interest rate cuts by the Federal Reserve.

The 24K gold price was trading at Dh615.0 per gram on Friday, down from Dh617.5 per gram at the market close on Thursday. Among the other variants of the precious metal, 22K, 21K, 18K, and 14K slipped to Dh569.5, Dh546.0, Dh468.0 and Dh365.0 per gram, respectively.

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Spot gold was trading below $5,100 at $5,091.52 per ounce, down by half a per cent.

Antonio Di Giacomo, senior market analyst at xs, said precious metals were weighed down by a stronger US dollar and a reduction in expectations for interest rate cuts in the US. The combination of a stronger dollar and higher Treasury yields tends to weigh on the precious metal, as it increases the attractiveness of yield-generating assets compared to those that do not pay interest.

“In recent sessions, the market has adjusted its expectations regarding the Federal Reserve's monetary policy. Persistent inflation concerns and the resilience of some US economic indicators have led investors to reassess the speed and magnitude of potential rate cuts in the coming months, strengthening the dollar and reducing short-term appetite for gold,” he said.

Rising US Treasury yields have also been an important factor. When yields rise, the cost of holding gold increases, as investors find returns in fixed-income instruments more attractive.

“This dynamic has contributed to downward pressure on the metal, particularly after gold recently reached record highs driven by global uncertainty,” said Antonio.

However, the geopolitical backdrop continues to provide some support for the gold market. Tensions in the Middle East, particularly the conflict between Iran and Western powers, continue to generate episodes of risk aversion in financial markets. In such environments, gold maintains its traditional role as a safe-haven asset, helping limit deeper price declines.

The rise in oil prices has also become a relevant factor for global markets. Attacks on energy infrastructure and supply risks in the region have pushed crude prices higher, in turn fuelling global inflation concerns. A sustained increase in oil prices could lead to stronger inflationary pressures, complicating central banks' monetary policy decisions.