Dubai Gold Prices Drop as Global Markets Reel
Dubai's gold prices fell on Tuesday due to global market pressure from a strong US dollar and rising oil prices. The Dubai Jewellery Group reported that 24K gold decreased by Dh3 to Dh518.75 per gram, while 22K gold dropped by Dh2.75 to Dh480.50 per gram.
The drop in local gold prices mirrors the weakness in international markets after gold touched a one-month low on Monday. Spot gold was relatively unchanged at $4,300.96 an ounce early Tuesday, but US gold futures were down 0.3% at $4,341.10.
The market is watching the Federal Reserve's policy decision due on Wednesday, with expectations of a 25-basis-point rate increase that would take the benchmark range to 3.75%-4.00%. Higher US interest rates have weighed on gold because rising yields increase the opportunity cost of holding non-yielding bullion.
The geopolitical tensions involving Iran and regional oil supplies also contributed to market volatility, with Brent crude above $106.93 a barrel and US West Texas Intermediate at $102.65.