Gold Prices Slide in Dubai Amid Strait of Hormuz Tensions

Dubai's gold prices slipped on Monday amid attacks in the Strait of Hormuz, sending the precious metal into its third consecutive weekly decline. The 24K variant of gold was trading at Dh521.75 per gram at market open, down from Dh524 over the weekend.

Among other variants, 22K, 21K, 18K, and 14K were trading at Dh483.25, Dh463.25, Dh397, and Dh309.75 per gram respectively. Globally, the spot gold price gained 0.10% to $4,327.45 per ounce, while silver was up 0.13% at $63.87 per ounce.

Precious metals are heading for a third consecutive weekly decline of 2%, analysts said, with the latest surge in crude and bond yields driving gold towards a correction. According to Ole Hansen, Head of Commodity Strategy, 'the transmission mechanism from geopolitics through energy prices and into bond markets currently provides a powerful offset to traditional safe-haven demand.'

Hansen added that central-bank demand remains strong, concerns about fiscal sustainability have not disappeared, and the latest energy shock may ultimately reinforce demand for inflation protection and portfolio diversification.