Dubai gold prices remained below the Dh500 mark for a second consecutive week. Investors continued to monitor market movements as global economic factors weighed on the precious metal. Meanwhile, traders watched interest rate expectations closely because they continue to influence demand.
The Dubai jewellery market opened lower on Monday, August 3. The 24K gold variant traded at Dh489.75 per gram. On Friday, the same variant closed at Dh495.50 per gram. Therefore, buyers saw another decline at the start of the new trading week.
Other gold categories also recorded lower prices across the local market. The 22K variant traded at Dh453.50 per gram. In addition, 21K gold reached Dh435.00 per gram. Furthermore, 18K gold sold at Dh372.75 per gram. The 14K variant opened at Dh290.75 per gram.
Dubai gold prices have now remained under Dh500 for two straight weeks. Moreover, the precious metal has dropped significantly from its January peak. Current prices sit nearly 25 percent below the highs recorded earlier this year.
International markets also reflected weaker performance. Spot gold traded at approximately $4,064.34 per ounce during early trading. The metal slipped by 0.31 percent from the previous session. At the same time, silver declined by 0.39 percent and traded near $58.35 per ounce.
Market analysts expect gold to remain under pressure in the coming weeks. Rising energy costs continue to increase inflation concerns. As a result, many investors believe central banks could keep interest rates elevated for longer than previously expected.
Higher borrowing costs usually reduce the appeal of non-yielding assets like gold. Consequently, some investors continue shifting toward assets that generate returns during periods of higher interest rates.
Analysts also noted that gold has traded within a relatively narrow range during the past month. Prices have generally moved between $3,945 and $4,160 per ounce. However, the market has struggled to build enough momentum for a sustained breakout.
Technical indicators also suggest limited buying strength. Analysts pointed out that momentum measurements have remained weak for several months. Therefore, traders continue watching important support and resistance levels before making new positions.
If gold falls below the recent support level near $4,022 per ounce, additional declines could follow. Analysts believe the next price targets may appear around $3,945 and later near $3,900 if selling pressure increases.
On the other hand, stronger buying activity could improve the outlook. A decisive move above $4,160 per ounce would signal stronger bullish momentum. Until then, many investors expect prices to remain within the current trading range.
Silver also continued moving within a defined range over the past month. Analysts said prices have fluctuated between $55.60 and $63.25 per ounce. A drop below recent support could push silver toward the lower end of that range. However, a move above resistance would strengthen the positive outlook.
Dubai gold prices continue attracting attention from shoppers, investors, and jewellery retailers. Many buyers remain cautious while monitoring economic developments and central bank policies. In the coming weeks, market participants will continue watching inflation data, energy prices, and interest rate expectations for signs of the next major move.
As uncertainty remains, Dubai gold prices will likely stay sensitive to global financial conditions. Market direction will depend largely on economic data and investor sentiment during the remainder of the year.
