Dubai gold prices drop: 14-karat gold at just Dh300
Dubai: The yellow metal has seen a sharp drop in prices over the weekend as the standoff over the Strait of Hormuz kept energy prices high and added to pressure on the Federal Reserve to lift interest rates again in its fight against stubborn inflation. In the UAE, gold prices opened this Monday morning on a low. 24-karat gold is trading at Dh505.50 compared to its previous close of Dh516.50, a…
Dubai experienced a significant decrease in gold prices over the weekend, with 14-karat gold trading at just Dh300 per gram on Monday mornings. This drop was attributed to the ongoing standoff over the Strait of Hormuz, which caused energy prices to rise and increased pressure on the Federal Reserve to lift interest rates again to combat inflation.
The decline in gold prices was also influenced by the tense US-Iran conflict, which had been ongoing for eight months. Crude oil prices rose after Iran expressed unwillingness to back down from its conditions for reopening the strait, while Brent crude has increased by more than 70% in 2026. Expectations of further interest rate hikes by the Federal Reserve also contributed to the market pressure on gold.
Analysts noted that the natural buyer base for gold is likely to remain cautious until there is greater clarity on the resolution of the Middle East situation, while sellers are following the trend of rising real yields. Despite the drop in gold prices, dealmaking in the gold market continued, with South Africa's Gold Fields Ltd. making an unsuccessful approach for Australia's Northern Star Resources Ltd.
Written by urgent.news from Gulf News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
