Gold prices were trending downward in Dubai on Friday morning, with the precious metal losing around Dh40 per gram over the past month.
The 24K gold price, according to the Dubai Jewellery Group, was trading at Dh513.75 per gram at the market open on Friday, down from Dh514.25 per gram at the close of markets on Thursday.
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The precious metal was trading at around Dh554 per gram a month ago, as gold remained under pressure over the past few sessions due to a stronger dollar and inflation concerns stemming from higher oil prices.
Among the other variants of the yellow metal, 22K, 21K and 18K were trading at Dh475.75, Dh456.00 and Dh391.00 per gram, respectively.
Spot gold was down slightly at $4,261 per ounce, while silver was down 0.2 per cent at $63.40 an ounce.
Ole Hansen, head of commodity strategy at Saxo Bank, said gold faces an increasingly hostile macroeconomic backdrop, with US Treasury yields, real yields and the dollar all rising as markets price in inflation risks and tighter US Federal Reserve policy.
“Higher yields remain a near-term headwind, but also raise longer-term financial risks, as elevated borrowing costs increase pressure on governments, companies and other leveraged parts of the financial system. Investment demand remains surprisingly resilient, with Bloomberg data showing global gold ETF holdings rising by almost 50 tonnes so far in September despite the jump in real yields. Chinese demand remains exceptionally strong, with imports exceeding 1,000 tonnes through August, already surpassing the total for the whole of 2025,” he said.
Gold, along with other precious investment metals, is once again being tested by some of its traditional macroeconomic headwinds. The sharp repricing across the US Treasury curve since the start of the Iran war has accelerated in recent days, lifting nominal and real yields while supporting a renewed recovery in the dollar. For a non-interest-bearing asset such as gold, that combination would normally represent a powerful incentive for investors to reduce their exposure.
Source: Khaleej Times