Gold prices in Dubai declined to their lowest point in 90 days on Friday, offering jewellery buyers the most affordable rates observed since April following yet another challenging week for the precious metal. The 24-karat variety was priced at Dh479.75 per gram at 9.35 am, reflecting a decrease of Dh1.75 from the previous day’s price of Dh481.50. The widely purchased 22-karat variety experienced a decline of Dh1.75, bringing the price down to Dh444.25 per gram from Dh446. Friday’s rates bring both varieties to their lowest levels in the price data extending back to April 19. The decline indicates that the intrinsic gold value of a 10-gram acquisition has decreased by Dh1,025 for 24K and Dh947.50 for 22K in comparison to the peak observed in April, prior to the addition of making charges and other retail expenses.

Dubai’s 24K rate has decreased by Dh102.50 per gram, representing a decline of approximately 17.6 per cent from Dh582.25 on April 19. The 22K rate has decreased by Dh94.75 from Dh539 during the same timeframe, indicating a decline of approximately 17.6%. Prices sustained a high level throughout late April and a significant portion of May, with 24K consistently trading above Dh540 and peaking at Dh570.75 on May 11. The retreat accelerated in June, although rates temporarily surpassed Dh520 during the initial half of the month. Gold dipped below Dh500 in late June and has stayed near that level throughout July. The recent decline has resulted in 24K decreasing by Dh23.25 from its peak of Dh503, observed on July 4 and July 5. The 22K variety has experienced a decline of Dh21.75 from its July peak of Dh466 during the same period. On Friday, the price of 24K gold is Dh14 lower compared to July 10, while 22K gold is Dh13 less expensive.

Most of that decline occurred over the last three sessions, with 24K decreasing from Dh489.75 on Wednesday to Dh479.75 on Friday. Buyers who had been anticipating a decline in rates below the levels observed in late June now find themselves with a broader price advantage. The 24K rate has decreased by Dh6 compared to June 29, whereas the 22K rate is Dh5.50 lower. Global gold was on track for its largest weekly decline since early June, even as it inched up to nearly $3,980 an ounce on Friday. Bullion experienced a decline of 3.4% for the week, as renewed hostilities in the Middle East heightened concerns that rising energy costs could sustain elevated inflation levels, potentially prompting the US Federal Reserve to consider another interest-rate increase. The US initiated another series of strikes on Iran on Thursday, subsequent to attacks the previous night that targeted an oil tanker near the nation’s primary export terminal.

Oil prices maintained a significant weekly increase, exacerbating inflation worries as the conflict progressed into its fifth month. Several Federal Reserve officials have articulated apprehensions regarding the persistence of inflation and cautioned that an increase in interest rates may be necessary. Elevated interest rates generally exert downward pressure on gold, as the metal lacks interest payments, thereby enhancing the appeal of yield-generating assets in contrast. A stronger dollar and rising bond yields exerted additional pressure. Gold is priced in US dollars, resulting in increased costs for buyers utilising other currencies when the dollar appreciates. Bullion has experienced trading within a confined range near $4,000 in recent weeks, following a 14% decline in the second quarter, marking its weakest quarterly performance since 2013.