Dubai gold prices fell on Friday after crossing AED 500 earlier in July, ending below the key mark.
The 24K rate dropped AED 3.75 to AED 491.75 per gram, while 22K gold fell AED 3.25 to AED 455.50. Prices moved sharply during July as global gold, the US dollar, and rate expectations changed.
The 24K rate reached AED 503 on July 4 and 5, the month’s highest price in Dubai. It later dropped to AED 481.50 before recovering and reaching AED 500.75 again on July 22.
The 24K rate slipped to AED 485 on July 28 before ending July at AED 491.75. The 22K rate followed a similar path, hitting AED 466 before falling to AED 446.
It later recovered to AED 463.75 before closing the month at AED 455.50 per gram. The drop gives buyers a lower price after sharp daily swings in July.
International gold remained on track for a monthly gain despite Friday’s decline. Bullion traded near $4,080 an ounce and targeted a July gain of nearly 2%.
The Federal Reserve kept rates unchanged this week as inflation remained a key concern. Fed Chair Kevin Warsh said higher rates could help if inflation stays high for longer.
Warsh said: “If inflation continues to be elevated through the forecast period, interest rates could well be part of that solution.”
Higher rates often pressure gold since the metal does not provide regular interest income. Dollar moves also influenced gold prices by changing buying costs worldwide.
Gold markets await Federal Reserve signals about future interest rate decisions. The Jackson Hole Economic Policy Symposium later in August could offer another important policy signal.
Regional tensions also remain important as the US and Iran continue exchanging strikes. Energy prices, currency movements, and rate expectations could keep Dubai gold prices unstable.
For jewelry buyers, the move below AED 500 may offer an entry point after July’s peak.
Also Read: Gold Price Today: Dubai 24K Gold Price Stands at AED 491.75 Per Gram