Dubai gold prices fall again after Dh25 drop from April peak

Dubai: Dubai gold prices edged lower on Tuesday morning, giving shoppers a small breather after another volatile month for bullion, with global markets still caught between Iran war risks, oil-driven inflation pressure and central bank caution. (Check latest UAE gold prices , alongside prices in , , , , , and .)

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The 24-karat variety stood at Dh562.50 per gram at 9.20am, down from Dh565.75 on Monday, while 22-karat gold slipped to Dh520.75 from Dh524. The decline leaves 24K gold Dh25.50 below its April 17 level of Dh588, while 22K is down Dh23.75 from its Dh544.50 peak on the same day.

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The latest move keeps Dubai gold close to the lower end of this month’s range, although prices remain above the April 6 low of Dh561 for 24K and Dh519.50 for 22K. Compared with the start of the month, 24K is now cheaper by Dh10.50 per gram, while 22K has fallen by Dh10 from its April 1 level.

Shoppers get a small breather

The price drop is modest, but it matters for buyers who delayed purchases when rates crossed Dh580 earlier this month. A 10-gram purchase of 24K gold now costs Dh255 less than it did at the April 17 peak, before making charges, taxes or retailer pricing differences are included.

The monthly trend has been uneven. Gold began April at Dh573 for 24K and Dh530.75 for 22K, dropped in the first week, recovered through the middle of the month, and then climbed to its highest point on April 17. Prices stayed elevated around Dh580 on April 19 and April 20 before retreating again during the final week.

Tuesday’s decline continues that late-month cooling, although the market has not returned to early-April lows. The movement suggests shoppers may have a narrower buying window, especially if global bullion prices react again to geopolitical headlines or interest rate signals later this week.

Global gold eases

Globally, bullion traded near $4,670 an ounce on Tuesday after slipping on Monday, with traders watching US-Iran diplomatic efforts and a busy week of central bank decisions. Reuters reported that spot gold was down 0.2% at $4,670.89 an ounce, while US gold futures also eased 0.2%.

Gold’s latest weakness comes despite continued tension around the Strait of Hormuz, where disruption to energy flows has kept oil prices elevated and added to inflation concerns. AP reported that Asian markets weakened and oil rose after talks to end the Iran war stalled, while the Bank of Japan held its benchmark rate at 0.75% and pointed to inflation risks linked to higher oil prices.

Rates remain the key risk

The next trigger for gold will come from central banks, with investors watching decisions from the US Federal Reserve, the European Central Bank, the Bank of England and the Bank of Canada. Reuters said major central banks are widely expected to keep rates steady, while markets remain alert to how policymakers frame the inflation fallout from the Middle East conflict.

Higher-for-longer interest rates are usually negative for gold because the metal does not pay interest. That makes the current backdrop difficult for bullion, with geopolitical risks offering support while inflation worries and central bank caution limit fresh buying.

Gold has now lost ground from its April highs, but the market remains highly sensitive to any sign of progress or failure in talks over Iran and the Strait of Hormuz.

- With inputs from Bloomberg.