Gold prices in the UAE fell on August 13, the morning after reaching their highest levels of August a day earlier. The decline offered some relief to buyers, though prices are still sharply higher than at the start of the month.
At 9:24 am, 24-karat gold was priced at AED 529.75 per gram. The rate was down AED 3.50 from August 12, AED 533.25. The price of 22-karat gold fell AED 3.25 to AED 490.75 from AED 494.
August 13 rates marked the month's highest levels so far. The latest decline gives jewelery buyers a small break after a strong rise through the first half of August.
24- karat gold is now AED 42.50 per gram above its August 1 price of AED 487.25. The 22-karat rate is AED 39.50 higher than its August 1 level of AED 451.25. The rise gathered pace after prices touched AED 485.50 for 24-karat gold on August 3. The rate crossed AED 500 on August 6 and moved above AED 523 the following day. The 22-karat rate followed a similar pattern, rising from AED 449.50 on August 3 to AED 472.75 on August 6. It then climbed to AED 485 on August 7 before reaching AED 494 on August 13.
Gold is up about 9% month to date. International gold prices traded near $4,400 an ounce after softer US inflation data eased pressure around interest rates. Bullion rose as much as 0.9% and briefly touched a 10-week high before giving up part of the gain. US consumer prices increased 0.1% in July from the previous month.
A weaker jobs report last week also shaped expectations around US monetary policy. Investors are now watching upcoming employment and inflation figures ahead of the Federal Reserve's next meeting. Markets will also track comments from Fed Chairman Kevin Warsh at the Jackson Hole symposium later this month. Lower expectations for interest rates can support gold. The metal does not provide interest income, making it more attractive when borrowing costs are expected to fall.
Ahmad Assiri, Research Strategist at Pepperstone, said, “Gold is now up around 9% month to date, and traders seem to be tilting expectations to the upside. I also suspect dealers are contributing to some extent to the flows as they cover options exposure in contrast to last month which was an excellent environment for selling gold options and collecting premiums, given the relatively tight range of around 5%. Hence as gold breaks away from that range, dealer hedging could be adding some additional flow to the move.”
He added, “Middle East tensions seem to have moved slightly off the market's radar, despite no clear development or breakthrough in Oman-related talks. Rather, attention appears to have shifted toward other developments. I think this provides some marginal support for gold in the short term by allowing flow dynamics to dominate the price action, while geopolitical risk remains present in the background.”
Oil prices are heading for a weekly gain as markets follow efforts by the US and Iran to end the conflict and reopen the Strait of Hormuz. Gold has traded above $4,000 an ounce in recent weeks. Investor demand and increased central-bank purchases have supported prices, with China also adding to its gold holdings.
This week's rise also pushed gold above its 100-day moving average for the first time since April. For UAE buyers, the August 13 decline offers limited relief. The wider trend still points to elevated prices, with global monetary policy, investor flows and Middle East risks likely to shape the next move.
Also Read: Dubai Gold Price: 24K Reaches AED 530.25, Gains Continue