The price of 24K gold has decreased by nearly Dh10 per gram, now trading at Dh526.75, down from yesterday’s Dh537.00. Similarly, the widely sought-after 22K gold decreased to Dh487.75 per gram, a decline from Dh497.25 observed yesterday. Gold has long been regarded as a safe-haven asset in periods of conflict; however, the ongoing situation poses a risk to the Strait of Hormuz, which is likely to lead to an increase in global oil prices. Rising fuel prices contribute to inflationary pressures, leading investors to anticipate that central banks will maintain elevated interest rates for an extended period.

Consequently, dollar-denominated assets such as U.S. Treasury bonds are gaining appeal among investors, diverting capital from non-yielding commodities like gold. Antonio Di Giacomo notes that gold is experiencing “heavy profit-taking among investors” even in the face of structural support stemming from global uncertainty. He said “the market still believes that geopolitical risk has not fully disappeared,” meaning the precious metal could continue facing downward pressure in the short term, even as it retains its long-term appeal as an inflation hedge.

Expatriates observing their home markets for wedding or investment purchases are experiencing some relief, albeit the decline is somewhat more moderate. 24K Gold (India) is priced at Rs 156,050 per 10 grams, reflecting a decrease from yesterday’s price of Rs 156,820. 22K Gold (India) is priced at Rs 143,050 per 10 grams, reflecting a decrease from yesterday’s price of Rs 143,750. While Indian buyers are capitalising on this dip, the rupee’s relative performance against the rising U.S. dollar has prevented domestic prices from plummeting as sharply as international spot rates.