Dubai: Gold prices fell further in Dubai on Tuesday, with the 24K rate dropping below Dh500 per gram as a stronger US dollar and rising US Treasury yields weighed on the precious metal.
The 24K rate opened at Dh496.75 per gram, down from Dh498.50 at Monday’s close. Gold has fallen by Dh37 per gram over the past month.
22K Gold Falls to Dh460
Other gold rates also declined on Tuesday morning:
- 24K: Dh496.75 per gram
- 22K: Dh460.00 per gram
- 21K: Dh441.00 per gram
- 18K: Dh378.00 per gram
Spot gold was trading 0.18 per cent lower at $4,122 an ounce.
Lower Prices Boost Festive Buying
The decline comes just ahead of India’s major festive season, including Navratri, Dhanteras and Diwali.
With Dubai gold prices falling below Dh500 per gram, some expatriate and non-resident Indian (NRI) families have reportedly brought forward their festive jewellery purchases.
Strong Dollar Weighs on Gold
Chris Weston, head of research at Pepperstone, said gold’s short-term investment outlook remains under pressure.
He noted that gold prices remain in a short-term downtrend, with rallies facing selling pressure. Weston said a break below recent lows around $4,110 could increase selling pressure towards $4,100 and potentially $4,000.
He added that gold would need to break above $4,275 for the near-term outlook to become more positive.
According to Weston, the stronger US dollar and rising US real yields are among the key factors weighing on gold. The USD index remains above 102, while US 10-year real yields have climbed to around 2.93 per cent, increasing the opportunity cost of holding a non-yielding asset such as gold.
