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Time to buy? Gold prices plunge in Dubai, losing more than Dh11 per gram
Gold prices fell due to US-Iran tension as US launched strikes against Iran after President Donald Trump said Tehran had shot down an American Apache helicopter in the Strait of Hormuz
- PUBLISHED: Wed 10 Jun 2026, 9:51 AM
Gold prices plunged on Wednesday morning as oil prices jumped due to the US-Iran tension.
The 24K gold price fell Dh11.25 per gram to Dh503 at the market open on Wednesday, while 22K gold slipped to Dh465.75 per gram, losing Dh10.5 per gram.
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Among the other variants, 21K, 18K and 14K fell to Dh446.5, Dh382.75 and Dh298.5 per gram, respectively.
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Due to the drop in gold prices, as reported by Khaleej Times, demand for jewellery has picked up in Dubai and the UAE, especially for 22K jewellery.
Spot gold fell below $4,200 an ounce, trading at $4,192 an ounce, down 1.63 per cent. Silver lost 1.65 per cent to $64 an ounce.
The US on Tuesday launched strikes against Iran after President Donald Trump said Tehran had shot down an American Apache helicopter in the Strait of Hormuz, deepening doubts over a potential peace deal and further straining a fragile ceasefire.
Simon-Peter Massabni, Head of Business Development at xs.com, said when geopolitical factors become intertwined with economic and monetary variables, gold’s price action tends to become less responsive to the traditional catalysts that investors have historically relied upon to assess future market direction.
“In theory, escalating tensions in the Middle East and the growing risk of a broader regional conflict should increase demand for gold as a safe-haven asset. However, what is actually occurring in the markets suggests that investors are placing greater emphasis on the strength of the US dollar and expectations surrounding Federal Reserve monetary policy. This shift has pushed gold lower, driving prices to their weakest levels in several months,” he said.
According to Massabni, the recent decline in gold prices does not reflect a loss of the precious metal’s attractiveness as an investment asset.
“Rather, it reflects a change in the priorities of global financial markets. Investors currently regard US inflation as the most influential factor affecting asset performance, particularly as energy prices remain elevated due to ongoing geopolitical tensions. These developments have prompted markets to reprice the probability of additional Federal Reserve rate hikes or the possibility of keeping interest rates elevated for longer than previously expected. Such a scenario directly benefits the US dollar while weighing on gold, which does not generate income for its holders,” he added.
