Dubai gold prices remained stable on Monday after a sharp decline over the past 10 days. However, traders continued to monitor global economic signals, as uncertainty still weighed on the precious metals market.
Dubai gold prices dropped significantly since early May. Investors reacted to rising bond yields and a stronger US dollar. As a result, gold demand weakened across several major markets, including the Gulf region.
Data from local traders showed 24K gold trading at Dh547.25 per gram on Monday morning. Earlier this month, the same grade reached Dh568.5 per gram. Consequently, buyers saw a decline of more than Dh21 per gram within a short period.
Meanwhile, other gold categories remained steady during early trading in Dubai. The 22K variant traded at Dh506.75 per gram, while 21K gold reached Dh486.0 per gram. In addition, 18K gold stood at Dh416.5 per gram, and 14K gold at Dh325.0 per gram.
Globally, spot gold edged slightly higher to around $4,535.7 per ounce. Despite this increase, market sentiment remained cautious due to geopolitical tensions and inflation concerns.
Last week, gold approached its lowest level of the month as global yields continued to rise. Higher Treasury yields typically reduce demand for non-yielding assets like gold. Therefore, many investors shifted toward interest-bearing investments.
At the same time, a stronger US dollar added further pressure on prices. A firm dollar makes gold more expensive for international buyers. Consequently, global demand often weakens under such conditions.
Energy markets also influenced sentiment in recent sessions. Rising oil prices raised inflation concerns and shaped expectations around future interest rate decisions. Analysts said higher inflation could keep borrowing costs elevated for longer.
Dubai gold prices also reacted to regional tensions over the weekend. Reports of drone activity near sensitive facilities increased uncertainty across commodity markets. As a result, investors turned more cautious as crude oil prices moved higher.
Saudi Arabia reported successful interceptions of several drones during the same period. Meanwhile, broader geopolitical tensions continued affecting investor confidence across global markets.
The US president urged Iran to respond quickly as diplomatic discussions slowed. These remarks added further pressure on already fragile financial markets. Consequently, investors remained cautious across commodities and equities.
In another development, JPMorgan revised its gold forecast for 2026. The bank now expects gold to average $5,243 per ounce, down from a previous estimate of $5,708.
Market analysts believe several factors may continue to influence prices in the coming months. These include interest rates, currency strength, and geopolitical uncertainty. However, gold still remains a key hedge against inflation and volatility.
Dubai gold prices are expected to stay sensitive to global developments this week. Traders will closely watch oil markets, inflation data, and interest rate expectations for further direction.
