Gold prices in Dubai opened the week on a stable note after recording a sharp decline over the past 10 days. According to data from the Dubai Jewellery Group, 24K gold was trading at Dh547.25 per gram on Monday morning. This marks a drop of Dh21.25 per gram compared with May 8, when 24K gold was priced at Dh568.50 per gram.
The decline reflects pressure on global gold markets, as higher US Treasury yields and a stronger dollar continue to affect demand for the precious metal.
Dubai Gold Rates on Monday Morning
Other gold variants also traded steadily in Dubai at the start of the week. 22K gold was priced at Dh506.75 per gram, while 21K gold stood at Dh486.00 per gram. Meanwhile, 18K gold was trading at Dh416.50 per gram, and 14K gold was available at Dh325.00 per gram. In international markets, spot gold edged higher to around $4,535.70 per ounce.
Gold Under Pressure From Dollar and Treasury Yields
Gold slipped close to its lowest level of the month on Friday as rising Treasury yields and a firm US dollar weighed on the market. Because gold does not generate interest, higher yields often reduce its appeal compared with income-generating assets. A stronger dollar can also make gold more expensive for buyers using other currencies.
Energy prices and inflation concerns are also playing a role. Higher crude prices can increase inflation expectations, which may keep upward pressure on US Treasury yields and further affect gold’s performance.
Geopolitical Tensions Add Market Volatility
Earlier on Monday, gold fell 1.1 per cent to $4,488.99 per ounce, reaching its lowest level since March 30. The move came as markets reacted to rising geopolitical tensions in the region. A drone strike that caused a fire near a nuclear power plant in the UAE added to concerns, while higher crude prices increased speculation around interest rates.
Saudi Arabia also reported intercepting three drones, adding to regional uncertainty. Meanwhile, US President Donald Trump warned that Iran must act “fast” after efforts to end the US-Israeli war appeared to stall.
JPMorgan Cuts 2026 Gold Price Forecast
In another sign of pressure on the yellow metal, JPMorgan lowered its average gold price forecast for 2026. The US investment bank now expects gold to average $5,243 per ounce in 2026, down from its earlier forecast of $5,708 per ounce. The revision suggests that major financial institutions are reassessing gold’s outlook as global markets respond to interest rate expectations, inflation pressures and geopolitical developments.
Outlook for Dubai Gold Buyers
For buyers in Dubai, the recent decline may offer a more attractive entry point compared with prices seen earlier this month. However, understanding the best time to buy gold in UAE depends not only on local gold rates, but also on global factors such as the US dollar, Treasury yields, inflation expectations and geopolitical tensions.. However, gold prices remain sensitive to global market movements, including the direction of the US dollar, Treasury yields, energy prices and regional tensions.
For now, Dubai gold prices have stabilised after a notable 10-day fall, but the market remains vulnerable to further swings.