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Dubai gold prices recover after dropping below Dh500 per gram
Higher Treasury yields, a stronger US dollar and expectations of prolonged high interest rates are weighing on gold, while geopolitical tensions could support safe-haven demand
- PUBLISHED: Wed 30 Sept 2026, 9:14 AM
Gold prices in Dubai recovered further as prices inched up by approximately Dh2 per gram on Wednesday morning.
According to Dubai Jewellery Group data, the 24K gold price was trading at Dh503.50 per gram at the market open on Wednesday, up from Dh501.25 per gram at the close of markets on Tuesday.
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The 24K gold price fell below Dh500 per gram on Monday evening, and prices remained under pressure on Tuesday morning due to higher oil prices amid the Middle East war.
Among the other variants of the precious metal, 22K, 21K and 18K gold were trading at Dh466.25, Dh447.25 and Dh383.25 per gram, respectively.
Spot gold was up 0.78 per cent at $4,180 per ounce.
Naeem Aslam, chief investment officer at Zaye Capital Markets, said the immediate pressure on bullion is coming from higher Treasury yields, a firmer US dollar and expectations that interest rates may remain restrictive for longer, all of which raise the opportunity cost of holding a non-yielding asset.
“At the same time, US President Donald Trump’s latest economic remarks are reinforcing the narrative of resilient US growth, with emphasis on strong employment, domestic manufacturing investment and large-scale industrial expansion,” he said.
According to Aslam, Trump’s comments on steel production, 50 per cent tariffs and domestic manufacturing add another layer to the gold outlook because stronger industrial activity can support growth, while tariffs may also increase input costs and inflationary pressure.
“That combination can keep bond yields elevated, which is normally a headwind for gold in the short term. However, geopolitical uncertainty remains an important offset. President Trump has said further talks with Iran are expected while also indicating that the conflict is not fully resolved. If negotiations reduce geopolitical risk, some safe-haven demand could fade, but any renewed escalation, energy-supply disruption or stronger oil-price shock could quickly restore defensive demand for gold,” he added.
