Gold prices in the UAE opened sharply lower on Monday, giving jewellery buyers some relief after a volatile run in bullion markets. The decline came as international gold fell below the $4,200-an-ounce mark, weighed down by rising real yields, a firmer dollar and renewed concerns that the US Federal Reserve may need to raise interest rates again. Energy prices also remained a major influence, with tensions around the Strait of Hormuz keeping oil elevated and adding to inflation worries. In Dubai, the latest move pushed several local gold rates noticeably below their previous closing levels.
UAE gold rates move lower
In the local market, 24-karat gold was priced at Dh505.50 per gram, down from the previous close of Dh516.50. The 22-karat rate stood at Dh468 per gram, while 14-karat gold was around Dh300 per gram.
The drop offers a lower entry point for shoppers, although prices remain high by historical standards after months of strong swings in precious metals.
Oil and Fed outlook pressure bullion
Spot gold fell 1.88 per cent to $4,197.54 an ounce at 8.30am Dubai time, extending last week’s decline of more than 2 per cent. Oil prices rose as the standoff over the Strait of Hormuz continued, with the US-Iran conflict now stretching into its eighth month. Brent crude has climbed more than 70 per cent so far in 2026.
Markets are also watching the Federal Reserve closely. Officials approved a quarter-point rate increase earlier this month, and traders now see about a 65 per cent chance of another move in October.
Investors reassess gold versus bonds
Analysts say gold remains highly sensitive to oil prices, real yields and expectations for a Middle East resolution. Higher yields can reduce gold’s appeal because the metal does not generate income, making bonds more attractive for some investors.
Gold has traded mostly between $4,230 and $4,510 in September, still well below January’s record near $5,600.
Other metals also decline
Silver dropped 3.41 per cent to $61.98 an ounce, adding to last week’s losses. Platinum and palladium both fell by more than 2 per cent, while the Bloomberg Dollar Spot Index edged up 0.1 per cent.