Dubai gold prices dip as Trump pauses Iran strike plan

Dubai: Gold prices in Dubai edged lower on Tuesday morning as global markets reacted to signs of easing geopolitical tensions following US President Donald Trump's announcement that he had paused a planned military strike against Iran to allow negotiations to continue.

In Dubai, 24K gold slipped to Dh547.25 per gram from Dh547.50 on Monday evening, while 22K gold eased to Dh506.75 from Dh507.00.

The decline comes as investors moved away from safe-haven assets after Trump indicated Gulf leaders from Qatar, Saudi Arabia and the UAE had urged Washington to hold off on military action against Iran while talks continue.

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The slight pullback in bullion prices also reflects softer oil prices and a stabilisation in global bond markets after sharp volatility last week.

For UAE shoppers, however, prices remain near historic highs despite today’s marginal dip, keeping jewellery demand cautious while encouraging some investors to continue buying on price corrections.

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Regional trends

In Saudi Arabia, gold rates were largely unchanged despite the softer international trend. 24K gold held steady at SAR568 per gram and 22K gold remained unchanged at SAR519 per gram.

The stable Saudi pricing suggests regional markets are waiting for clearer signals from both geopolitical developments and the US Federal Reserve before making sharper moves.

Indian gold buyers are also closely monitoring international uncertainty, particularly as bullion prices remain elevated ahead of the wedding and festive demand season.

The recent swings in global prices have made retail buyers cautious, with many preferring staggered purchases instead of bulk buying. Analysts say any further easing of tensions in the Middle East or a stronger US dollar could put further pressure on prices in the short term, although inflation fears continue to support gold’s long-term appeal.

International gold trends

Globally, spot gold fell 0.5 per cent to $4,543.49 an ounce on Tuesday morning, although it stayed above Monday’s 1.5-month low of $4,479.54.

US gold futures for June delivery slipped 0.2 per cent to $4,546.90.

According to Reuters, gold prices had already suffered their biggest one-day drop since March 26 last Friday, falling 2.4 per cent, before recovering slightly in the previous session. Markets are now balancing easing geopolitical fears against persistent inflation concerns.

Analysts said investors are closely watching the minutes of the US Federal Reserve’s April meeting due on Wednesday for clues on future interest-rate policy.

Oil prices also fell sharply, easing some inflation worries. Brent crude dropped 2.7 per cent to $109.09 a barrel, while WTI crude fell to $107.28. Lower oil prices typically reduce inflation hedging demand for gold.

Market attention is additionally focused on the US central bank after Kevin Warsh was confirmed as the next Federal Reserve chief, adding uncertainty over future rate-cut expectations.

Other precious metals also weakened, with spot silver down 2 per cent to $76.09 an ounce, platinum falling 0.7 per cent to $1,965.40, and palladium losing 1.5 per cent to $11,397.50.

With inputs from Reuters