Gold price dip shaped trading in Dubai this week. Gold prices fell under pressure from rising oil costs and inflation concerns. Global uncertainty also influenced investor sentiment across markets. Traders reacted to higher crude oil prices and weaker risk appetite. Interest rate expectations also shifted during the week.
Dubai gold prices opened lower on Thursday. Selling pressure continued from earlier sessions. 24K gold fell to 566.75 dirhams per gram. It dropped from 569.25 dirhams in the previous session. This marked a weekly loss of about 15.5 dirhams per gram during the gold price dip.
Other gold categories also moved lower in Dubai. 22K gold traded at 524.75 dirhams per gram. 21K gold reached 503.25 dirhams per gram. 18K gold stood at 431.25 dirhams per gram. 14K gold settled at 336.5 dirhams per gram. Demand stayed weak across all categories.
Global markets also showed weakness. Spot gold fell 0.57 percent to 4,707.9 dollars per ounce. Silver dropped 2.1 percent to 76.28 dollars per ounce. Both metals reacted to rising inflation expectations. Higher energy costs added pressure.
Oil prices stayed high during the week. Brent crude remained above 100 dollars per barrel. Supply conditions stayed tight. US inventory levels also fell. These factors increased inflation concerns. They also deepened the gold price dip.
Geopolitical tensions added further uncertainty. Traders watched US Iran negotiations closely. A ceasefire extension in the Middle East also influenced sentiment. Markets stayed cautious despite the update. Volatility remained in commodities.
Gold saw a small rebound on Wednesday. Prices recovered after earlier losses. The rebound followed ceasefire news. However, gains stayed limited. Investors still focused on inflation risks.
Financial strategist Eric Chia commented on market trends. He said longer negotiations could ease tensions. He also said inflation pressure may fall if stability improves. However, he warned that failed talks could reverse gains quickly. Strong dollar moves could also pressure gold during the gold price dip.
