Dubai Gold Prices Drop as US Federal Reserve Signals Extended High Interest Rates

Dubai gold prices declined on Thursday morning, tracking a global retreat in bullion rates following the release of the latest US Federal Reserve meeting minutes. The hawkish tone from US policymakers, which suggested interest rates may remain elevated for longer than anticipated, pressured the non-yielding asset. Local Retail Rates Dip In the Dubai jewelry market, 24K gold was trading at AED 288.75 per gram at the market opening, down from the previous day's close. Other denominations also saw a corresponding decrease: 22K gold opened at AED 267.50 per gram, while 21K and 18K were priced at AED 258.75 and AED 221.75 per gram respectively. The local price correction follows a period of record highs for the precious metal. Retailers in the city, often referred to as the "City of Gold," reported a slight cooling in immediate demand as buyers monitor the downward trend for a potential floor in pricing. Global Market Pressures The shift in pricing is directly linked to international spot gold, which fell below the $2,400 per ounce threshold. US Federal Reserve officials indicated that achieving the 2% inflation target is taking longer than expected, dampening hopes for immediate rate…