Global Gold Prices Remain Elevated, Dubai Gold Edges Lower

Illustration - Gold commodities (Dok. ICDX)

JAKARTA — Global gold prices remained near US$4,160 per ounce after rising over the past week, although they eased slightly at the start of the new week. In Dubai, 24-karat gold opened at AED 501 per gram on Monday morning, down from AED 503 per gram on Sunday.

According to Gulf News on Monday, July 6, 24-karat gold in Dubai was trading at AED 501 per gram as of 9:35 a.m. local time. The price of 22-karat gold also slipped to AED 464 per gram from AED 466 per gram a day earlier.

The decline came as global gold prices gave up part of last week’s gains during early Monday trading. Despite the pullback, Dubai gold prices remain well above levels seen at the end of June.

On June 30, 24-karat gold stood at AED 485.25 per gram, compared with AED 485.75 per gram the previous day. Prices then climbed throughout the first week of July, rising from AED 489.75 on July 1 to AED 494.75 on July 2.

On July 3, Dubai’s 24-karat gold price broke through the AED 501-per-gram mark and remained at AED 503 throughout the weekend. As a result, Monday’s decline has not erased the gains recorded since the beginning of July.

In global markets, gold posted its first weekly gain since May. The advance was supported by easing expectations that the U.S. Federal Reserve would continue raising interest rates.

Speaking to Gulf News, Ahmad Assiri, Research Strategist at Pepperstone, said gold strengthened last week after markets interpreted comments from Fed Chair Warsh as less hawkish than previously anticipated. The remarks pushed U.S. Treasury yields lower, weakened the dollar slightly, and helped drive gold prices closer to US$4,200 per ounce.

Gold typically benefits when expectations for higher interest rates diminish, as lower yields reduce the opportunity cost of holding non-yielding assets such as gold.

However, pressures on the precious metal have not disappeared. Assiri noted that gold surrendered part of its gains during Monday’s early trading session. While sentiment has improved compared with recent weeks, elevated U.S. bond yields remain a key headwind.

“In my view, gold is likely to remain under pressure, with high yields continuing to cap demand. Nevertheless, the outlook is considerably brighter than it was several weeks ago, when markets were anticipating a move toward the US$3,900 range,” Assiri said.

He added that markets continue to struggle to gauge the direction of Warsh’s policy stance due to the absence of clear forward guidance. The uncertainty has increased volatility in Treasury yields, which in turn has affected gold prices.

“The bottom line is that markets still cannot clearly read Warsh’s policy direction, as he continues to avoid providing forward guidance. This has fueled significant volatility in the yield curve and consequently affected the metal,” he said.

Dubai gold prices experienced sharper swings in June. Twenty-four-karat gold reached AED 522.25 per gram on June 16 before falling to AED 486 on June 25 and AED 485.25 on June 30.

Prices rebounded in early July, with 24-karat gold moving back above AED 500 per gram on July 3. Twenty-two-karat gold followed a similar pattern, rising from AED 453.50 per gram on July 1 to AED 466 by the weekend before easing to AED 464 on Monday.

Weaker U.S. labor market data and declining energy prices also influenced market sentiment. Both factors led investors to scale back expectations for further monetary tightening.

Oil prices fell on Monday as more tankers passed through the Strait of Hormuz and OPEC+ signaled higher supply levels. The developments eased some inflationary pressures that had previously supported expectations for higher borrowing costs.

Although Dubai gold prices slipped from weekend levels, they remain significantly above late-June levels, when 24-karat gold traded at around AED 485 per gram.