Gold prices in Dubai remained under pressure on Friday as global economic uncertainty and rising bond yields continued to impact precious metal markets.
The price of 24K gold opened at Dh545.75 per gram, slightly lower than Thursday’s closing price of Dh547.50 per gram. Gold prices have now fallen by around Dh25 per gram since reaching this month’s peak of Dh570.75 on May 11.
Meanwhile, silver prices moved higher, gaining around 0.55% in international trading.
According to market analysts, precious metals are facing downward pressure mainly due to rising U.S. Treasury yields and ongoing geopolitical uncertainty linked to tensions involving the United States and Iran.
Vijay Valecha said delays in resolving the Iran conflict have contributed to higher energy prices, which in turn are supporting higher government bond yields.
Higher Treasury yields generally reduce the appeal of non-interest-bearing assets such as gold because investors can find stronger returns in bonds and fixed-income investments.
Valecha also noted that silver prices are currently experiencing more volatility compared to gold, reflecting broader uncertainty in global financial markets.
Another factor affecting precious metals is growing concern over increased government spending and fiscal policies aimed at stimulating economic growth in major economies, especially the United States.
Analysts say rising inflation-adjusted borrowing costs, also known as real yields, are reducing investor interest in gold as a safe-haven asset in the short term.
At the same time, geopolitical tensions continue to influence global commodity and financial markets. Recent comments from Donald Trump regarding possible renewed military action involving Iran have added further uncertainty to market sentiment.
Despite the recent decline, gold prices in Dubai remain closely watched by both investors and retail buyers, especially as the UAE continues to be one of the region’s major gold trading hubs.
Industry experts believe gold prices may remain volatile in the coming weeks depending on global interest rate expectations, geopolitical developments, and movements in the U.S. dollar and bond markets.
Source: International financial market and commodity reports
