Dubai gold prices experienced a decline on Monday morning, reaching their lowest point this month as global market trends continued to exert downward pressure on bullion. The 24-karat variety was priced at Dh519.75 per gram at 9.17am on Monday, a decrease from Dh521.75 on Sunday. Meanwhile, the price of 22-karat gold fell to Dh481.25 from Dh483. The recent shift indicates that 24-karat gold has decreased by Dh22.75 per gram since June 2, when it was priced at Dh542.50, while 22-karat gold has seen a decline of Dh21 from Dh502.25 during the same timeframe. The price movement indicates a distinct reversal from the early June highs, during which Dubai gold prices were trading above Dh539 per gram for 24-karat and approximately Dh500 for 22-karat. After maintaining stability over the weekend, prices began to decline again on Monday, providing jewellery buyers in the UAE with a more favourable entry point following weeks of high rates.

Gold prices continued to fall globally as renewed military tensions between Israel and Iran heightened concerns regarding the conflict’s trajectory. Concurrently, robust economic data from the US exerted pressure on interest rate expectations. Bullion declined to approximately $4,300 per ounce following a nearly 5% drop last week, as traders reevaluated safe-haven demand, energy price forecasts, and the trajectory of monetary policy. The selloff occurred following Israel’s announcement of strikes on Iranian targets in retaliation for missile attacks from Tehran, which has introduced additional uncertainty to an already fragile ceasefire in the region. Ahmad Assiri noted that gold continues to face downward pressure, “trading around the $4,300 per ounce mark and extending the bearish sentiment that emerged at the end of last week.” Assiri stated “The metal is increasingly targeting the $4,100 region as the next significant support level, especially as risk appetite remains muted across broader markets.”

The recent decline will be monitored attentively by UAE consumers intending to buy jewellery, particularly following the rise above Dh540 per gram earlier this month for 24-karat gold. On June 1, the price of 24-karat gold was recorded at Dh539.75, while 22-karat gold stood at Dh500. Subsequently, prices experienced a brief increase, reaching Dh542.50 for 24-karat and Dh502.25 for 22-karat on June 2. On June 3, prices adjusted to Dh536 for 24-karat and Dh496.25 for 22-karat. However, on June 4, they rose once more to Dh538.50 and Dh498.50. The downward trend became more evident starting June 5, when 24-karat gold decreased to Dh522.50 and 22-karat to Dh483.75, ultimately stabilising at Dh521.75 and Dh483 over June 6 and June 7. Monday’s decline to Dh519.75 and Dh481.25 positions both categories at their lowest recorded levels for June. Gold faced downward pressure as robust US jobs data heightened expectations that the Federal Reserve may maintain elevated borrowing costs for an extended period or potentially increase rates in 2026.

Increased bond yields and a robust dollar generally exert downward pressure on gold, as it is denominated in US currency and lacks yield. The ongoing conflict in the Middle East has introduced additional uncertainty, as disruptions to energy flows through the Strait of Hormuz have resulted in rising oil prices and heightened inflation concerns. Any renewed inflation pressure could lead central banks to adopt a more cautious stance on rate cuts, presenting a potential headwind for bullion. Nonetheless, the sustained official demand over the long term continues to provide support for gold. Market participants are evaluating the latest round of acquisitions by the People’s Bank of China, which increased its reserves by approximately 10 tonnes last month. This marks the highest monthly total since 2024 and represents the 19th consecutive month of accumulation. Gold finds itself in a position where it is influenced by immediate selling pressures while also being supported by sustained demand from central banks in the long run.