Dubai gold buyers see some of the lowest rates in more than seven weeks

Dubai's gold buyers are currently enjoying some of the lowest rates in over seven weeks, with Dubai's 24-karat gold price falling below Dh500 per gram on Tuesday. At 12:45 PM, 24-karat gold was priced at Dh497.25 per gram, a decrease of Dh8.25 from Monday morning's opening of Dh505.50. Meanwhile, 22-karat gold saw a decline of Dh7.50 from its Monday morning price of Dh468.

This means that buyers are saving Dh66 on eight grams of 24-karat gold compared to Monday morning prices, excluding additional costs. Over the course of the past month, Dubai's 24-karat rate has dropped from Dh542 per gram on September 3 to Dh497.25, representing an 8.3% decline. Similarly, the 22-karat rate has fallen from Dh502 to Dh460.50, a difference of Dh41.50 per gram.

When compared to the beginning of September, when 24-karat gold was at Dh522, the price is now Dh24.75 lower per gram. The recent decline in Dubai gold prices can be attributed to expectations of a potential interest rate hike by the US Federal Reserve in October, coupled with rising US Treasury yields. These factors are making yield-bearing assets more attractive to investors, thereby weighing on gold's price as it does not generate interest.