Gold price in Dubai experienced a drop in early trade on Tuesday, as reported by the Dubai Jewellery Group. The 24K gold variant fell by Dh1, trading at Dh319.5 per gram at 9 am UAE time. On Monday, the yellow metal saw a larger decline, losing over Dh3 before recovering by Dh2 later in the day.
Meanwhile, other gold variants also started lower on Tuesday. The 22K gold was priced at Dh295.75 per gram, while 21K and 18K were trading at Dh286.5 and Dh245.5 per gram, respectively.
Globally, spot gold showed a slight recovery, trading at $2,637.89 per ounce, up by 0.12% during morning trade.
Factors Driving Gold Price in Dubai
Tito Iakopa, Commercial Director at FlowCommunity, noted that the strengthening US dollar significantly influenced the recent decline in gold prices. He explained that the dollar gained momentum following a series of political developments.
“Donald Trump issued strong warnings to BRICS nations regarding any efforts to create an alternative currency to the US dollar. His threats of 100% tariffs, echoing similar warnings to Canada and Mexico last week, have added pressure on market sentiment,” Iakopa stated.
This situation has heightened concerns about inflation, which may impact the Federal Reserve’s future interest rate policies.
Market Focus on US Economic Data
Looking ahead, traders are closely monitoring upcoming US economic data to better understand the Federal Reserve’s policy outlook. Key releases this week include job openings, wage growth figures, and activity in the services and manufacturing sectors. Additionally, the unemployment rate will provide further clues about the economic trajectory.
Speeches from Federal Reserve officials, including Chair Jerome Powell, are also anticipated to offer insights into the central bank’s stance.
Geopolitical Influences
Gold’s safe-haven appeal has eased slightly after the US-brokered ceasefire between Israel and Hezbollah. However, ongoing geopolitical tensions, particularly the Russia-Ukraine conflict, continue to support demand for gold.
These factors are expected to limit substantial downside risks for gold in the near term.
