Gold prices in Dubai experienced continued pressure on Tuesday, with 24-karat gold dropping below the Dh500 threshold, providing buyers with an opportunity to purchase at reduced prices following the significant declines observed in the preceding days. At 12:45 PM on Tuesday, September 29, the price of 24-karat gold was set at Dh497.25 per gram, whereas 22-karat gold was valued at Dh460.50. In comparison to Monday morning, when 24-karat commenced at Dh505.50, purchasers are currently disbursing Dh8.25 less per gram. The price of 22-karat gold has decreased by Dh7.50 from Monday morning’s Dh468.

That equates to a reduction of Dh66 on eight grams of 24-karat gold relative to prices observed on Monday morning, excluding any applicable making charges and additional costs. The latest prices extend a challenging month for gold, following Dubai’s 24-karat rate, which reached Dh542 per gram on September 3. At Tuesday’s level of Dh497.25, 24-karat gold is Dh44.75 per gram below the September high, reflecting a decline of approximately 8.3%. The 22-karat rate has exhibited a comparable trajectory, declining from Dh502 on September 3 to Dh460.50 on Tuesday, reflecting a reduction of Dh41.50 per gram. In comparison to the beginning of September, when the price of 24-karat gold was recorded at Dh522, there has been a decline of Dh24.75 per gram.

International gold prices experienced a modest increase on Tuesday, following a decline that brought them to their lowest point in over seven weeks on Monday. Spot gold increased to approximately $4,144 per ounce on Tuesday, following a decline of about 4% in the prior session. The decline occurred in conjunction with increasing US Treasury yields and anticipations that the US Federal Reserve may implement another interest rate hike in October. Markets were anticipating approximately a 70% likelihood of an additional Fed rate increase in October, while investors were closely monitoring developments in the Middle East and their implications for oil prices and inflation.

Higher interest rates generally exert downward pressure on gold, as the metal lacks interest payments, rendering yield-bearing assets more appealing to investors in an environment of increased borrowing costs. Gold has experienced a decline of nearly 7% on the international market throughout September, despite reaching a peak of $4,510 an ounce earlier in the month. The recent decline has occurred in the wake of the Federal Reserve’s initial interest-rate increase since 2023, alongside anticipations that additional tightening measures may be forthcoming.