Gold prices in Dubai commenced the week on a downward trajectory on Monday morning, providing jewellery purchasers with yet another price reduction following a tumultuous month characterised by significant fluctuations, with rates oscillating between unprecedented peaks and their lowest points in recent weeks. The 24-karat variety was priced at Dh489.25 per gram on Monday morning, a decrease from Dh492.75 on Sunday. The popular 22-karat variety was priced at Dh453, in contrast to Dh456.25 the previous day. The recent decline indicates that 24-karat gold is currently priced at Dh53.25 less than its level of Dh542.50 recorded on June 2, whereas 22-karat gold has decreased by Dh49.25 from Dh502.25 in the same timeframe. Purchasing 10 grams of 22-karat jewellery reveals a price discrepancy of approximately Dh492 from the peak observed this month, excluding making charges and VAT.

Dubai gold prices commenced the month at heightened levels, with 24-karat priced at Dh539.75 on June 1, subsequently increasing to Dh542.50 the following day. The 22-karat rate surpassed Dh500 per gram within the initial two days of the month, prompting a sense of caution among jewellery buyers. Prices experienced a modest decline on June 3 and June 4; however, a significant drop occurred on June 5, with 24-karat falling to Dh522.50 and 22-karat decreasing to Dh483.75. Rates persisted at those levels for several days prior to a significant decline on June 10, when 24-karat decreased to Dh492.50 and 22-karat fell to Dh456. The market experienced a temporary recovery in the middle of the month, with 24-karat gold prices rising above Dh520 on June 15 and June 16. The rebound proved ephemeral, as prices declined once more in the concluding week of June. Monday’s opening rate hovers near the month’s lowest point. The lowest price for 24-karat gold in June was Dh486 on June 25, while 22-karat gold reached Dh450 on the same day.

The final week of June has become increasingly appealing for UAE residents who postponed their purchases when prices exceeded Dh520 and Dh530 per gram earlier in the month. The correction holds significance for wedding buyers and families engaging in larger jewellery acquisitions, as even minor fluctuations in per-gram pricing can substantially alter the final invoice once making charges are incorporated. Internationally, gold declined to near $4,000 an ounce following the exchange of attacks between the US and Iran, which exerted pressure on a ceasefire that had previously contributed to a reduction in energy prices to pre-war levels. Spot gold experienced a decline of up to 0.9% following a rise of 1.6% on Friday. Oil prices increased following the weekend attacks that impacted shipping routes through the Strait of Hormuz, particularly after a tanker transporting Qatari crude was struck.

The two sides have since reached an agreement to cease hostilities and convene on Tuesday in Doha, as reported by unnamed US officials. Gold has faced pressure due to the interest-rate outlook. US inflation data was reported at elevated levels, yet it remained largely in line with analyst expectations. Concurrently, Treasury yields experienced a decline following a 0.4% increase in the US personal consumption expenditures price index for May compared to the prior month. Gold has declined approximately 23% since the United States and Israel initiated strikes on Iran in late February. This downturn is accompanied by rising energy prices, which are exacerbating inflation concerns and heightening expectations that central banks may maintain elevated interest rates for an extended period. That is typically detrimental for bullion, as gold does not provide interest income.