Dubai gold prices experienced a decline on Friday afternoon, providing jewellery buyers with a more affordable entry point following a brief surge of 24-karat gold above Dh500 earlier in the week. The 24-karat variety was priced at Dh485.25 per gram at noon, reflecting a decrease of Dh2.25 from Dh487.50 on Thursday and a decline of Dh15.50 compared to the Dh500.75 noted on Wednesday. Prices for 22-karat gold have decreased to Dh449.25 per gram from Dh451.50 on Thursday, positioning the popular jewellery category Dh14.50 lower than Wednesday’s level of Dh463.75.

Friday’s price positions 24-karat gold at Dh17.75 beneath its July apex of Dh503, attained on July 4 and July 5. The metal commenced the month at Dh489.75, subsequently surpassing Dh500 in the initial week. However, it experienced a decline, reaching a monthly low of Dh481.50 on July 16 and July 17. Prices subsequently rebounded, attaining Dh500.75 on July 22, before experiencing a decline in the subsequent two sessions. The 22-karat variety exhibited a comparable trajectory, ascending to a monthly peak of Dh466 in the initial week of July, subsequently declining to Dh446 by mid-month. Friday’s rate of Dh449.25 stands Dh3.25 above the monthly low, providing buyers with a more favourable price compared to the levels observed earlier this week.

Gold continued its decline in international markets, decreasing by as much as 0.7% to approximately $4,020 an ounce, following a 2% drop in the prior session. Renewed escalation in the Middle East has propelled Brent crude above $100 a barrel for the first time since May, heightening concerns that increased energy costs may contribute to inflationary pressures. On Thursday, two-year US Treasury yields rose for the sixth consecutive day, indicating a heightened anticipation that the US Federal Reserve may implement a tightening of monetary policy. Elevated interest rates generally diminish the attractiveness of gold, as the precious metal yields no interest payments.

Swap traders currently assign a 34% likelihood to the Federal Reserve raising interest rates at its upcoming meeting. Markets have factored in at least one increase in September, with the potential for an additional adjustment before the year’s conclusion. Additional uncertainty ensued following the US decision to impose duties ranging from 10% to 12.5% on imports from most major trading partners, citing allegations of forced labour within supply chains. Gold has maintained a trading range near $4,000 an ounce since late June, a threshold regarded by certain traders as a significant support level. The metal remains approximately 25% below its peak of nearly $5,600, attained prior to the military actions by the US and Israel against Iran in late February.