Dubai gold prices fall sharply even as global rates rise on Iran ceasefire extension

Dubai: Gold prices in Dubai dropped sharply on Wednesday morning as markets reacted to easing geopolitical tensions following a US move to extend a ceasefire with Iran. Spot gold rose 1.48 per cent to $4,770.01 per ounce, as of 11:07 am UAE time, after falling to its lowest level since ​April 13 on Tuesday.

The divergence reflects how local prices are continuing to track currency and regional pricing dynamics rather than safe-haven demand.

(Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

In Dubai, 24-carat gold fell to Dh565.00 per gram from Dh573.00 yesterday, while 22-carat declined to Dh523.00 from Dh530.50.

The sharper drop compared to Tuesday’s mild easing suggests that the recent downtrend is accelerating, offering more visible relief to buyers after last week’s highs.

The move contrasts with global markets, where gold prices rose after the US signalled a de-escalation in tensions. US President Donald Trump said he would indefinitely extend the ceasefire with Iran to allow for further peace talks, easing fears of an inflation spike driven by higher oil prices.

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Regional trends: Saudi Arabia, India

In Saudi Arabia, gold prices remained unchanged, with both 24-carat and 22-carat gold holding steady at 589.00, indicating a stable local pricing environment despite global volatility.

India saw a slight decline in prices. The 24-carat rate dropped to ₹154,750 per 10 grams from ₹155,290, while 22-carat gold slipped to ₹141,850 from ₹142,350.

The easing mirrors Dubai’s trend, suggesting that consumer markets are seeing some relief even as global benchmarks tick higher.

Global outlook

The upward movement of the shiny metal comes as lower oil prices — triggered by the ceasefire extension — eased concerns about inflation and the need for prolonged high interest rates. Stocks gained, the US dollar weakened, and crude prices declined, all of which supported gold.

Analysts say markets are now highly sensitive to developments around the ceasefire. “With this ceasefire extension, markets perceive a de-escalation in the crisis. If hostilities resume, the dollar could strengthen, while oil and interest rates may rise, putting pressure on gold,” Edward Meir, analyst at Marex, told Reuters.

At the same time, expectations around US monetary policy remain in focus. Federal Reserve chief nominee Kevin Warsh said he had made no commitments on rate cuts, reinforcing uncertainty around the interest rate path..

For now, while global gold is finding support from softer oil prices and a weaker dollar, Dubai’s continued decline underscores that local pricing remains more closely tied to currency movements and regional demand — unless geopolitical risks escalate sharply again.