Gold loses over Dh15 in Dubai so far this week on higher oil prices

[Editor's Note: Follow Khaleej Times live blog for the latest regional developments with the US-Israel-Iran ceasefire now in effect.]

Gold prices dropped at the opening of the markets in Dubai on Thursday, losing more than Dh15 per gram so far this week.

Dubai Jewellery Group data showed 24K trading at Dh566.75 per gram on Thursday morning, down from Dh569.25 at the close of the markets on Wednesday. The precious metal variant has lost Dh15.5 per gram so far this week.

Among the other variants of the precious metal, 22K, 21K, 18K and 14K were trading at Dh524.75, Dh503.25, Dh431.25 and Dh336.5 per gram, respectively.

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Spot gold fell to $4,707.9 per ounce, down 0.57 per cent, as elevated oil prices fuelled fears of inflation and prolonged high interest rates in the US.

Silver was also down 2.1 per cent to $76.28 per ounce.

Brent crude oil prices remained above $100 a barrel after larger-than-expected oil and distillate stock draws in the US, and due to a lack of progress in peace talks involving the US and Iran.

Investors were also looking for clarity on the stalled US-Iran peace talks for further direction.

Gold rebounded to a certain extent on Wednesday, recovering part of the previous session’s losses as markets reacted to an extension of the ceasefire in the Middle East.

Eric Chia, financial markets strategist at Exness, said US President Donald Trump’s decision to allow additional time for negotiations could help de-escalate the current tensions and temper concerns over energy-driven inflation. This could help push yields down and provide support to bullion.

“However, uncertainty remains elevated as the fragile backdrop continues to create risks for gold. Any breakdown in negotiations could quickly reignite inflation fears, pushing the dollar and Treasury yields higher and weighing on the metal,” said Chia.