DUBAI: Gold prices in the UAE opened lower on Monday, September 28, extending a recent decline in the international bullion market as investors weighed higher oil prices and the possibility of another US Federal Reserve interest-rate increase.
The opening UAE retail quote put 24-karat gold at Dh505.50 per gram, down Dh11 from the previous close of Dh516.50. The reported rate for 22-karat gold was Dh468 per gram, while 14-karat gold fell to Dh300 per gram.
The move follows weakness in international gold prices. Market reporting on Monday showed bullion under pressure as investors reassessed the outlook for US monetary policy and the economic consequences of elevated energy costs.
Why gold prices are falling
One of the main pressures on gold is the changing interest-rate outlook in the United States.
The Federal Reserve raised its benchmark rate by 25 basis points in September, and several policymakers have subsequently indicated that further increases could be necessary. Markets were pricing in about a 65 per cent probability of another increase in October, according to contemporaneous market reporting.
Higher interest rates can weigh on gold because bullion does not pay interest. When bond yields and other interest-bearing assets become more attractive, investors may reduce their exposure to non-yielding assets such as gold.
The US dollar and Treasury yields have also been important factors for bullion. A stronger dollar generally makes gold more expensive for buyers using other currencies, while higher yields can increase the opportunity cost of holding the metal.
Strait of Hormuz uncertainty adds to pressure
Energy markets are another part of the picture.
The continuing standoff surrounding the Strait of Hormuz has kept oil prices elevated. Iran has maintained conditions for reopening the strategic waterway, while US President Donald Trump has said he expects negotiations with Tehran to resume.
The wider US-Iran conflict has entered its eighth month, while Brent crude was reported to be about 70 per cent higher in 2026. Higher energy prices have increased concerns about inflation, adding another complication for the Federal Reserve as it considers its next policy steps.
That combination — expensive energy, inflation concerns and expectations for higher interest rates — has created a difficult environment for gold.
Global gold remains below its January peak
International bullion has also pulled back significantly from its January high.
Gold traded within a relatively narrow range of about $4,230 to $4,510 an ounce during September, according to market reporting, compared with an all-time high of nearly $5,600 reached in January.
The decline has not been limited to gold. Other precious metals have also faced selling pressure, with silver, platinum and palladium recording falls in recent trading.
For UAE consumers, international bullion movements are closely reflected in local gold-rate boards, although the final price paid for jewellery can be higher because of making charges and other costs.
What UAE gold buyers should know
A lower quoted gold rate does not necessarily mean a jewellery item will cost exactly Dh300 per gram.
The gold rate represents the underlying metal value, while a jewellery purchase can also include making charges and other applicable costs. The Dubai Jewellery Group says its retail gold pricing is displayed through screens at jewellery stores and is updated during the day.
Buyers should therefore check the karat, weight, per-gram rate, making charge and final invoice before completing a purchase.
The difference between karats is also important. 24K gold has the highest purity, while 22K and 14K contain progressively higher proportions of other metals. A lower per-gram price for 14K therefore does not represent the same gold content as 24K.
For shoppers comparing jewellery prices in Dubai, the fall in the headline rate provides a useful reference point, but the final bill should be assessed against the item’s gold weight and additional charges.
Gold market remains sensitive to Fed signals
The immediate direction of gold is likely to remain closely linked to expectations for US monetary policy, energy prices and developments around the Middle East.
Investors are watching upcoming US economic data and Federal Reserve signals for indications of whether inflation remains strong enough to justify additional tightening. Market participants had already increased expectations for another rate rise as energy prices remained elevated.
For UAE consumers, that means gold rates can continue to move quickly. The Dh300-per-gram 14K rate reported at the start of Monday’s trading session should therefore be treated as a market snapshot rather than a fixed price for the day.
What is the gold price in Dubai on September 28, 2026?
The reported opening UAE rate was Dh505.50 per gram for 24K gold, Dh468 for 22K and Dh300 for 14K gold.
Why did Dubai gold prices fall?
Gold prices were pressured by weaker international bullion prices, elevated oil prices and growing expectations that the US Federal Reserve could raise interest rates again.
How much did 24K gold fall?
The reported opening 24K rate was Dh505.50 per gram, compared with Dh516.50 previously — a decline of Dh11 per gram.
Is 14K gold really Dh300 per gram in Dubai?
The reported opening rate on September 28 was Dh300 per gram for 14K gold. The final jewellery price can be higher after making charges and other applicable costs.
Does the gold rate include jewellery making charges?
No. The quoted gold rate represents the underlying gold value. Jewellery purchases can include additional making charges and other costs.
Why do US interest rates affect gold?
Gold does not generate interest. When interest rates and bond yields rise, interest-bearing investments can become relatively more attractive, putting pressure on demand for bullion.
Does a lower gold rate mean jewellery will be cheaper?
Not necessarily. The final price depends on the gold weight, purity, making charges and other applicable costs in addition to the quoted gold rate.
Where can UAE consumers check gold rates?
Dubai Jewellery Group says its retail gold rates are displayed on pricing screens at jewellery stores and updated during the day.
