Dubai gold prices extended their decline on Friday, September 25, with 24-karat gold falling to AED 513.75 per gram at the market open. The latest move leaves the benchmark rate about AED 40 below its level a month earlier, reflecting sustained pressure on international bullion prices.
According to data from the Dubai Jewellery Group, 24K gold was trading at AED 513.75 per gram on Friday, compared with around AED 554.50 on August 27. The decline amounts to roughly AED 40.75 per gram in 29 days.
Gold also slipped from Thursday's closing level of AED 514.25 per gram. Other popular categories recorded lower rates as well, with 22K gold at AED 475.75, 21K at AED 456 and 18K at AED 391 per gram, according to Dubai market data.
Dubai gold prices also moved sharply in recent weeks as international markets reacted to changes in the US dollar, Treasury yields, energy prices and expectations for US monetary policy.
A stronger US dollar has added pressure to gold, which is priced internationally in the US currency. A firmer dollar can make bullion more expensive for buyers holding other currencies. Gold does not generate interest income, so higher yields can increase the opportunity cost of holding bullion.
Ole Hansen, head of commodity strategy at Saxo Bank, said, “gold is facing a more difficult macroeconomic environment as US Treasury yields, real yields and the dollar rise amid inflation concerns and expectations around tighter Federal Reserve policy.” Markets are closely watching energy prices and its potential impact on the Federal Reserve's interest-rate outlook.
Also Read: Dubai Gold Rate Today: 24K Holds at AED 517 as Fed Policy, Oil Prices Shape Market