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UAE: Gold prices fall Dh11.50 in a week as investors weigh inflation, growth concerns
The analyst expects gold to remain range-bound between $3,950 and $4,200 per ounce until markets receive clearer signals on inflation, interest rates and the broader economic outlook
- PUBLISHED: Thu 16 Jul 2026, 9:25 AM UPDATED: Thu 16 Jul 2026, 11:39 AM
Gold prices extended their decline on Thursday morning, with the 24K variant falling Dh11.50 per gram over the past week as investors remained cautious amid uncertainty over inflation and interest rates.
The 24K variant of the precious metal was trading at Dh485.75 per gram at open of markets on Thursday. While the other variants, 22K, 21K, 18K and 14K, were trading at Dh449.75, Dh431.25, Dh369.50 and Dh288.25 per gram, respectively.
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Spot gold was trading $4,031.64 per ounce, down 0.40 per cent. Silver was down 0.13 per cent to trade at $57.04 per ounce.
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Ole Hansen, Head of Commodity Strategy at Saxo Bank, said gold remains caught between opposing macroeconomic forces, making it difficult for prices to establish a clear direction.
"Gold continues to search for direction," Hansen said, noting that markets are debating whether inflation or slowing economic growth will become the dominant theme in the second half of the year.
He said bullion briefly climbed above $4,100 an ounce after softer-than-expected US inflation data reduced expectations of near-term Federal Reserve tightening. However, those gains quickly faded as higher crude oil prices and renewed geopolitical tensions fuelled concerns that rising energy costs could push inflation higher again.
Despite those headwinds, Hansen said gold has shown resilience around the $4,000 level, suggesting investors are becoming less willing to sell aggressively as concerns grow that persistently high energy prices could eventually weigh on economic growth.
The analyst expects gold to remain range-bound between $3,950 and $4,200 per ounce until markets receive clearer signals on inflation, interest rates and the broader economic outlook.
Hind Aldah is a business reporter based in Sharjah. In her spare time, you will find her playing classical guitar, painting amateur oil paintings, or crocheting the same old scarf that leads nowhere.