Gold Prices Drop Further In Dubai, Losing More Than Dh48 Per Gram In A Month

Gold prices continued their downward trend in Dubai on Monday morning due to high oil prices and interest rate hikes in the US amid escalating Middle East conflict.

The 24K gold price fell to Dh519.75 per gram at the market open on Monday, down from Dh521.75 over the weekend.

The 24K gold price has fallen Dh48.5 per gram over the past month and Dh27.75 per gram in June so far.

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Among the other variants of the precious metal, 22K, 21K, 18K, and 14K gold prices fell to Dh481.25, Dh461.25, Dh395.5, and Dh308.5 per gram, respectively.

Globally, spot gold was trading at $4,310 per ounce, down 0.45 per cent.

Israel and Iran launched attacks against each other over the weekend, including strikes on petrochemical facilities in Iran.

Simon-Peter Massabni, head of business development at xs, said the yellow metal is currently going through one of its most complex phases in years, as geopolitical developments are colliding with monetary and economic factors in a way that makes it increasingly difficult for investors to determine the future direction of prices with confidence.

"Despite escalating tensions in the Middle East and renewed concerns surrounding regional stability, global supply chains, and energy markets, the precious metal has failed to achieve sustained gains that reflect the magnitude of existing risks. This raises a fundamental question regarding the primary driver of gold's next move: will geopolitical risks prevail, or will the strength of the US dollar and the Federal Reserve's restrictive monetary policy continue to dominate?" he said.

Massabni added that an objective assessment of current market conditions suggests that gold is facing stronger fundamental headwinds than the traditional supportive factors investors typically rely upon during periods of uncertainty and geopolitical stress.

Gold jewellery demand surges 30% in Dubai after India hikes import duty and price drop Gold and jewellery are 12% cheaper in UAE after India duty hike Gold prices remain under pressure, 22K stays below Dh500 in Dubai

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