Dubai gold prices ease as precious metals face pressure from higher crude prices and rising bond yields. The 24K gold rate opened at Dh521.75 per gram on Monday, September 14, down from Dh524 over the weekend. The move comes as gold heads towards its third consecutive weekly decline.
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Dubai Gold Rates Move Lower
Gold prices in Dubai slipped amid attacks in the Strait of Hormuz. The latest decline comes as stronger oil prices and higher bond yields weigh on the precious metal.
The 22K gold price stood at Dh483.25 per gram at the market open. Meanwhile, 21K gold was trading at Dh463.25 per gram. The 18K rate was Dh397, while 14K gold stood at Dh309.75 per gram.
The latest rates show that Dubai gold prices ease after the stronger levels seen over the weekend. Investors are now watching global market movements closely.
Global Gold Prices Remain Under Pressure
Globally, spot gold gained 0.10 per cent and traded at $4,327.45 per ounce. Silver also moved higher, rising 0.13 per cent to $63.87 per ounce.
However, precious metals are heading for a third consecutive weekly decline of about 2 per cent. Analysts said the latest rise in crude prices and bond yields is pushing gold lower.
Gold is currently trading between $4,300 support and $4,400 resistance. Analysts do not expect this range to break convincingly before the Federal Reserve statement on Wednesday.
Why Oil Prices Are Affecting Gold
Ole Hansen, Head of Commodity Strategy, said the weakness in gold may look unusual during a period of rising Middle East tensions.
He explained that the impact of geopolitical tensions is moving through energy prices and bond markets. This is currently reducing some of the traditional safe-haven demand for gold.
However, Hansen said the latest correction does not necessarily damage the longer-term outlook for gold. Strong central-bank demand and concerns about fiscal sustainability remain important factors.
He also noted that the recent energy shock could increase demand for inflation protection and portfolio diversification. In the short term, bond yields and the dollar remain key factors for gold prices.
Dubai gold prices ease in the short term, but the wider outlook remains closely linked to global economic and geopolitical developments.
