Dubai gold prices fall as US-Iran tensions persist, global bullion weakens

Dubai: Gold prices in Dubai slipped on Thursday, tracking weaker global bullion as uncertainty around the ongoing US-Israel conflict with Iran continued to weigh on investor sentiment.

Despite an extended ceasefire announcement, markets remain cautious amid stalled negotiations and rising oil prices, keeping gold under pressure.

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In Dubai, 24-carat gold fell to Dh566.75 per gram in morning trade, down from Dh569.25 yesterday. The 22-carat variant dropped to Dh524.75 from Dh527.00. Elevated oil prices are fuelling fears of ‌inflation and prolonged high interest rates. Investors looked for clarity on the stalled U.S.-Iran peace talks.

(Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

Saudi Arabia, India trends

In Saudi Arabia, gold prices remained unchanged, indicating a more stable local market. The 24-carat rate held at 588.00, while 22-carat stood firm at 537.00, reflecting muted movement despite global fluctuations.

India, however, saw a sharper decline. The price of 24-carat gold dropped to ₹153,550 per 10 grams from ₹154,750, while 22-carat fell to ₹140,750 from ₹141,850.

The fall mirrors global weakness and currency-adjusted pressures, with demand sentiment remaining cautious in the face of geopolitical uncertainty.

Global market trends

Internationally, gold prices edged lower, with spot gold hovering around $4,703–$4,712 per ounce, down roughly 0.3 per cent. The decline comes as a stronger US dollar and rising oil prices dampen bullion’s appeal.

Although gold is traditionally seen as a hedge against inflation, surging crude prices — now back above $100 per barrel — are fuelling expectations of prolonged high interest rates. This, in turn, is reducing demand for non-yielding assets like gold.

Markets are also reacting to the lack of progress in US-Iran negotiations. With both sides maintaining firm positions — including disputes over the Strait of Hormuz and ongoing sanctions — geopolitical risks remain elevated but directionless, limiting gold’s upside.

Other precious metals also declined, with silver, platinum, and palladium all posting losses, reflecting broader weakness across the metals complex.