Gold became a little cheaper in Dubai on Tuesday. The 24K price slipped to Dh496.75 per gram at the market open, just as many Indian families in the UAE begin planning their festive purchases.
The opening price compares with Dh498.50 at Monday’s close and sits Dh37 per gram below where it was a month ago. Other carats followed the same direction. The 22K variety eased to Dh460.00, 21K to Dh441.00 and 18K to Dh378.00 per gram. Globally, spot gold was down 0.18 per cent at $4,122 an ounce.
The prices at a glance
- 24K: Dh496.75 per gram (Dh498.50 at Monday’s close)
- 22K: Dh460.00 per gram
- 21K: Dh441.00 per gram
- 18K: Dh378.00 per gram
- Spot gold: $4,122 an ounce, down 0.18 per cent
Why the metal is under pressure
The main drivers are the US dollar and interest rates. Chris Weston, head of research at Pepperstone, said the short-term case for gold remains weak. In his view, price action is heavy, rallies are being sold quickly and sellers are firmly in control.
At the heart of the weakness, he said, is the rising opportunity cost of holding a metal that pays no interest. The US dollar index is holding above 102, near multi-year highs. US 10-year real yields have climbed to about 2.93 per cent, close to cycle highs after a sharp rise through August and September. Weston also noted limited inflows into gold-backed exchange-traded funds and gold-mining funds, which removes a source of support.
That backdrop fits wider market moves. reported on Monday that the 10-year US Treasury yield had reached 5 per cent, its highest since 2007. The US Federal Reserve raised interest rates by 25 basis points in mid-September, to a range of 3.75 to 4 per cent. When safe-yielding government bonds pay more, non-yielding assets such as gold generally lose some appeal.
Levels traders are watching
Weston said a break below recent lows around $4,110 looks increasingly likely. That could speed up selling towards $4,100 and potentially $4,000, a zone where strong demand appeared during June, July and August. For the outlook to turn more constructive, he said, gold would need to rise above $4,275. For now, he described it as a seller’s market.
A welcome dip for festive shoppers
The decline has landed at a convenient moment for the UAE’s large Indian community. Navratri, Dhanteras and Diwali traditionally bring a surge of gold buying, since the metal is considered auspicious. With 24K trading below the Dh500 mark, Khaleej Times has reported that some expatriate and non-resident Indian families are bringing forward their jewellery purchases rather than waiting for the peak days.
Lower prices can also stretch household budgets further. A buyer can afford more weight for the same spend, or simply pay less for a planned piece. Retailers in Dubai often see footfall rise around these festivals, and falling prices tend to reinforce that pattern.
What buyers should keep in mind
The rates quoted above are benchmark prices at the market open. They can move through the day, and what a customer pays at the counter usually includes a jewellery retailer’s making charges and applicable taxes on top of the benchmark figure. Shoppers comparing offers should check how each shop calculates those add-ons.
Anyone considering gold as an investment, not just a festive purchase, should weigh the risks. Analysts quoted here describe a market where the near-term direction depends heavily on dollar strength and US yields, both of which can change quickly. This report is for information only and is not investment advice.
Comments 1