Dubai gold prices drop in early trade, losing Monday’s gains

Gold prices in Dubai declined by Dh2 per gram in early trading on Tuesday, as international gold and silver prices also moved lower.

According to Dubai Jewellery Group data, the price of 24K gold stood at Dh483.25 per gram at the market open, down from Dh485.25 on Monday.

Dubai Gold Rates on Tuesday

The latest prices for different gold purities in Dubai were as follows:

24K gold: Dh483.25 per gram
22K gold: Dh447.50 per gram
21K gold: Dh429.25 per gram
18K gold: Dh367.75 per gram

The decline comes as investors assess geopolitical uncertainty, energy market risks and the outlook for US monetary policy.

International Gold and Silver Prices Decline

In international markets, spot gold fell 0.4% to $4,007 an ounce, while silver dropped 1.7% to $53.30 an ounce.

Naeem Aslam, Chief Investment Officer of Zaye Capital Markets, said gold was struggling to hold the psychologically important $4,000 level despite rising geopolitical uncertainty.

Aslam said US President Donald Trump’s latest statements regarding Iran, including the possibility of further military action, claims concerning control of the Strait of Hormuz and the prospect of diplomatic negotiations, had increased concerns about global energy security.

However, these developments have not translated into sustained demand for gold as a safe-haven asset. Instead, rising oil prices, inflation expectations and elevated US Treasury yields are creating competing pressures on the precious metal.

According to Aslam, further disruptions to Middle Eastern energy supplies could push crude oil prices higher, increasing transportation costs, business expenses and consumer inflation expectations.

Higher inflation could make it more difficult for the US Federal Reserve to cut interest rates. This could support the US dollar and keep real interest rates elevated, making gold less attractive because it does not generate interest.

Diplomatic Progress Could Support Gold

Aslam added that meaningful diplomatic progress involving Iran could ease concerns about energy supplies and reduce inflationary pressures.

Such developments could improve expectations for future interest-rate cuts, potentially creating a more supportive environment for gold prices.

For now, investors are monitoring geopolitical developments, oil prices and US monetary policy for signals about the next direction of the gold market.