( Image caption: The 24K gold rate in Dubai fell to Dh497 per gram on Tuesday, down from Dh500.50 at Monday’s close. Photo: Shihab/KT.)
Gold prices in Dubai fell below Dh500 per gram on Tuesday morning, with 24-karat gold recording a monthly decline of Dh30.50 ahead of the Diwali festive season.
According to the latest market rates, 24K gold was trading at Dh497 per gram, down from Dh500.50 at Monday’s market close.
Other gold varieties also recorded lower prices, offering shoppers an opportunity to explore jewellery purchases ahead of Diwali and take advantage of seasonal promotions.
Dubai Gold Prices on October 20
The latest gold rates in Dubai were:
- 24K gold: Dh497 per gram
- 22K gold: Dh460.25 per gram
- 21K gold: Dh441.25 per gram
- 18K gold: Dh378.25 per gram
- 14K gold: Dh295 per gram
On international markets, spot gold gained 0.07 per cent to trade at $4,143.48 per ounce. Silver also moved higher, rising 0.52 per cent to $57.44 per ounce.
Gold and Silver Face Different Market Pressures
Vijay Valecha, chief investment officer at Century Financial, said gold had experienced a relatively stable weekly performance, declining 0.70 per cent on Monday. Silver came under greater pressure, falling 6.33 per cent.
Gold subsequently recovered above $4,180 an ounce after comments by US Federal Reserve Chairman Kevin Warsh at the International Monetary Fund’s annual meeting in Bangkok prompted traders to reassess their expectations for interest rates.
Warsh did not comment on the outcome of the Federal Open Market Committee meeting scheduled for the month. As a result, the probability of an October rate hike fell to 12.7 per cent from 21 per cent a week earlier, Valecha said.
Weaker Dollar and Lower Yields Support Gold
According to Valecha, changing interest-rate expectations contributed to weakness in US Treasuries across the yield curve and a softer US dollar, supporting gold, which does not pay interest.
Oil prices also retreated from their monthly highs after US President Donald Trump waived sanctions and tariffs on Russian energy to keep Moscow engaged in Ukraine peace talks, he said.
The decline in oil prices helped ease inflation concerns and expectations of tighter monetary policy.
“Gold also picked up safe-haven demand as concerns over AI investments drove a selloff in equities and a fall in bond yields,” Valecha said.
What Lower Gold Prices Mean for UAE Shoppers
The decline in Dubai gold prices comes ahead of Diwali, when jewellery purchases traditionally feature in festive shopping.
With 24K gold trading below Dh500 per gram, buyers may find opportunities to purchase jewellery at lower rates than a month earlier. Seasonal discounts offered by retailers could provide additional savings.
However, gold prices remain sensitive to movements in the US dollar, interest-rate expectations, inflation data and investor demand for safe-haven assets. Shoppers should check the latest daily rates and compare jewellery-making charges and retailer promotions before making a purchase.
