Following a turbulent month in which local rates moved about Dh50 below their June peak, gold prices in Dubai dropped once more on Thursday morning, providing jewellers with a slight price reprieve. 24-karat gold was worth Dh489.25 per gram at 9:30 am, compared to Dh489.75 on Wednesday. The 22-karat variety dropped from Dh453.50 to Dh453. The decrease was slight, but it leaves Dubai gold prices near to the lower end of the month’s range and considerably below the levels observed at the start of June. Dubai gold prices began June at high levels; on June 3, 24-karat gold was worth Dh536, and the next day, it was worth Dh538.50. After that, prices decreased throughout the month, albeit not in a straight line.

The 24-karat variety stayed above Dh520 for several days in early and mid-June, including Dh522.50 on June 5, Dh521.75 on June 7 and Dh522.25 on June 16. During such periods, the 22-karat variety also held close to Dh483. In the latter part of the month, rates started to decline more noticeably. The 24-karat variety fell from Dh509.25 on June 18 to Dh500 on June 19 and Dh498.75 on June 23, while 22-karat gold moved from Dh471.50 to Dh463 and then Dh461.75 over the same period. By late June, prices had dipped below Dh490 for numerous sessions. The price of the 24-karat variety was Dh486.50 on June 24, Dh486 on June 25, Dh485.75 on June 29, and Dh485.25 on June 30. On July 1, prices increased little to Dh489.75 before falling once more on Thursday.

The local fall came even as global gold prices extended gains following comments from US Federal Reserve Chairman Kevin Warsh soothed concerns that the central bank may raise interest rates again this year. After closing 0.6% higher in the previous session, bullion increased as much as 0.9% to trade at almost $4,066 per ounce. The move occurred after two days of declines. After the Iran war raised energy prices and inflation indicators, Warsh’s comments at the European Central Bank meeting in Portugal were perceived as less hawkish than anticipated, allaying some worries about the Fed’s future actions.

Gold typically suffers from higher interest rates because it doesn’t provide a yield. Warsh reiterated the Fed’s commitment to maintaining price stability and returning inflation to its 2% target. The US jobs report, which is expected on Thursday, will be the next signal for gold and may provide investors with a better understanding of the Fed’s policy direction. US data in recent years has been inconsistent. Manufacturing activity expanded for a sixth straight month in June, but at a slower pace, while private-sector hiring maintained solid and recorded the best three-month stretch in more than a year.