Dubai Gold Rates Dip on Stronger Dollar and Higher Treasury Yields

Dubai gold rates experienced a slight dip on Tuesday, with 24K gold falling to Dh496.75 per gram from Dh498 the previous day. Similarly, 22K gold dropped to Dh460 from Dh461, while 18K gold eased to Dh378 from Dh379. This decline mirrored a softer global gold market, pressured by a stronger US dollar and higher Treasury yields. Despite the downturn, market watchers remain focused on US monetary policy and ongoing geopolitical risks in the Middle East, both of which continue to influence bullion markets.

The Dubai Jewellery Group’s suggested retail prices reflect a modest day-on-day change, though actual rates may vary at individual outlets due to making charges and other costs. Globally, spot gold fell 0.3% to $4,128.83 per ounce, while US gold futures saw little change at $4,155.90. The dollar’s strength made gold more expensive for buyers using other currencies, while higher Treasury yields increased the opportunity cost of holding non-yielding gold.

Expectations of a Federal Reserve rate hike in December remain high at 87%, according to the CME FedWatch Tool, despite easing after weaker-than-expected US employment data. Meanwhile, tensions in the Middle East, particularly around the Bab el-Mandeb Strait, add another layer of uncertainty. Developments in these areas could impact energy supplies, shipping, and inflation, further influencing gold prices.

Other precious metals also declined on Tuesday, with spot silver dropping 0.6% to $60.69 an ounce, platinum falling 0.5% to $1,712.20, and palladium easing 0.5% to $1,166.86.