Dubai Gold Prices Decline Amid High US Treasury Yields

Jul 10, 2026

77 min

Jul 10, 2026 09:30

Dubai gold slips as elevated US yields blunt safe-haven demand

## Gold Prices in Dubai

Gold prices in Dubai experienced a decline as US Treasury yields remained high, impacting the demand for the precious metal. On Friday, the 24-karat gold rate fell to Dh495.75 per gram, down from Dh497.25 the previous day. Similarly, the 22-karat gold rate decreased to Dh459 from Dh460.50.

## Market Volatility

The gold market has shown volatility throughout July. The 24-karat gold rate started the month at Dh489.75, peaked at Dh503 on July 4 and 5, and then fluctuated, reaching Dh490 on July 8 before recovering slightly. The 22-karat gold followed a similar trend, with its highest point at Dh466 on July 4 and 5.

## Influencing Factors

The decline in gold prices is attributed to elevated US Treasury yields and geopolitical tensions, particularly around the Strait of Hormuz. These factors have led to cautious investor behavior. Additionally, rising oil prices have contributed to inflation concerns, further affecting gold's appeal.

## Interest Rates and Gold

High interest rates generally reduce gold's attractiveness since it does not yield interest. Minutes from the Federal Reserve's June meeting indicated some policymakers considered raising rates, but they remained unchanged. This uncertainty continues to influence gold's market dynamics.

## Future Outlook

Despite recent declines, the medium-term outlook for gold remains positive, although the market lacks a clear catalyst for a sustained recovery. Central bank purchases, particularly by China, continue to support gold prices. However, until there is more clarity on US interest rates, gold is expected to remain under pressure from geopolitical and economic factors.

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