Gold price in Dubai dropped by 11 dirhams, and 24K fell to 505.5 dirhams per gram

Gold prices in Dubai continued to decline on Friday morning as the precious metal lost about 40 dirhams per gram over the last month.

According to data from Dubai Jewellery Group, the price of 24-karat gold at the market opening on Friday was 513.75 dirhams per gram, which is lower than the level of 514.25 dirhams per gram recorded when trading closed on Thursday.

A month ago, the precious metal traded at approximately 554 dirhams per gram. Recently, gold has been under pressure due to the strengthening dollar and concerns about inflation caused by rising oil prices.

Other varieties of the yellow metal also showed a decrease: 22K traded at 475.75 dirhams, 21K at 456.00 dirhams, and 18K at 391.00 dirhams per gram.

The spot weight of gold slightly decreased to $4261 per ounce, while silver fell by 0.2 percent, reaching $63.40 per ounce.

Ole Hansen, Head of Commodity Strategy at Saxo Bank, noted that gold is facing an increasingly hostile macroeconomic backdrop. The rise in US Treasury yields, real rates, and the dollar reflects market expectations regarding inflationary risks and the tightening policy of the US Federal Reserve.

He added that while higher rates remain a short-term obstacle, they also increase long-term financial risks, as increased borrowing costs put pressure on governments, corporations, and other indebted parts of the financial system. Meanwhile, investment demand remains surprisingly resilient; Bloomberg data shows that global gold ETF holdings grew by almost 50 tons in September alone, despite rising real rates.

Furthermore, Chinese demand remains exceptionally strong: imports exceeded 1000 tons by August, which is already more than the total volume for the entire year 2025.

Gold, along with other precious investment metals, is once again subject to traditional macroeconomic factors. The sharp repricing of the US Treasury yield curve since the start of the Iran war accelerated in recent days, which raised nominal and real rates and supported the renewed growth of the dollar. For an asset like gold, which does not generate interest income, this combination usually serves as a powerful incentive for investors to reduce their risks.

The start of the week was marked by a decrease in gold prices in Dubai amid concerns about further interest rate hikes in the US and inflation. According to data from Dubai Jewellery Group, on Monday morning, 24K gold traded at 525.0 dirhams per gram, which is lower than the 527.5 dirhams per gram recorded at the end of trading last weekend.

Similarly, 22K, 21K, and 18K gold showed a decline to 486.0, 466.0, and 399.5 dirhams per gram, respectively. In the spot market, gold fell by 0.45 percent, reaching the mark of $4357 per ounce, while silver remained stable at $66.16 per ounce.

Previously, on Friday, gold had risen by approximately 1 percent, holding around the $4380 per ounce mark. The Federal Reserve raised the interest rate last week, and further increases were anticipated in the coming months.

Simon-Peter Massabni, Head of Business Development at XS.com, noted that the metal recovered after immediate concerns about energy supply disruptions in the Middle East weakened, aided by Saudi Arabia redirecting crude oil exports. This relief allowed gold to withstand the negative impact from the Federal Reserve after the central bank raised rates for the first time in three years.

Tension in the energy market intensified following attacks on a pumping station along the East-West pipeline and an export terminal in the port of Yanbu. These incidents threatened to reduce global crude oil supplies by nearly 4 percent.

News agencies reported that Saudi Arabia successfully rerouted crude oil sales, transporting about 60 million barrels through Ras Tanura and the Omani port of Sohar, located beyond the Strait of Hormuz. This shift restored export volumes to August levels or higher and helped lower crude oil prices from recent peaks.

On Monday morning, oil prices decreased, but they were still trading near the $100 per barrel mark. Massabni added that the drop in energy prices brings critical relief to broader inflationary pressure. Lower crude oil prices help limit bond yields and ease the severe liquidity shortage that previously constrained global capital. As sovereign yields decline, financial capital, especially from Asian and Middle Eastern investors, finds new opportunities to return to gold assets.

A decline in prices for gold and silver is observed in the commodities market. This drop occurred in the domestic market following a significant decrease in the international market.

On the commodity exchange (MCX), the price of gold fell by 230 rupees on October 5, reaching 151,000 rupees per 10 grams. Silver traded at 231,300 rupees per kilogram, showing a decrease of 1,300 rupees.

A decrease in precious metal prices has also been recorded in cities. In Delhi, the price of 24-carat gold dropped by 500 rupees to ₹1,54,230. The price of 22-carat gold in Delhi is ₹1,41,390, and 18-carat is ₹1,15,710. In Mumbai, the prices are as follows: 24 carat — ₹1,54,080, 22 carat — ₹1,41,240, and 18 carat — ₹1,15,560.

A decline was also noted in other towns: in Lucknow, 24-carat gold costs ₹1,54,230, 22-carat — ₹1,41,390, and 18-carat — ₹1,15,710. In Patna, 24-carat gold is valued at 1,54,130 rupees, 22-carat at 1,41,290 rupees, and 18-carat at 1,15,610 rupees.

A downturn is also visible in the global market: the price of gold fell by 0.37% to $4,336.42 per ounce, while silver decreased by 0.60% to $63.775 per ounce.

The main reason cited for the decrease in gold and silver prices is the continuous rise in energy prices. This increase raises concerns about potential interest rate hikes by the Federal Reserve and the Bank of Japan, which leads to a fall in precious metal prices.