Dubai gold drops to lowest level this month after US-Iran strikes

Dubai gold prices fell to their lowest level this month on Monday morning. The 24-karat variety stood at Dh488.75 per gram at 8.39 am, down Dh7.75 from Dh496.50 on Sunday, a decline of about 1.6% that took the rate below Dh490 for the first time since the start of July. The 22-karat variety dropped by Dh7.25 to Dh452.50 per gram. The fall in Dubai followed a wider sell-off in precious metals after the US and Iran exchanged fresh strikes over the weekend, pushing energy prices higher and renewing concerns about inflation and interest rates. Spot gold declined as much as 1.6% to trade near $4,050 an ounce. Higher energy prices have increased concerns that inflation could remain difficult to control, leaving the US Federal Reserve with less room to reduce borrowing costs. Higher interest rates tend to weigh on gold because the metal does not pay interest.