Gold prices dropped to a one-week low as rising oil-driven inflation concerns increased pressure on global interest rates.
WORLD CAPITALS: Gold prices fell sharply on Friday and headed towards a weekly decline as rising energy costs strengthened inflation concerns and reduced expectations of near-term interest rate cuts.
Spot gold dropped 0.8 per cent to $4,613.19 per ounce during early trading, marking its lowest level since May 6. The precious metal has now declined for four consecutive sessions and is down 2.1 per cent for the week.
Analysts said renewed concerns over higher oil prices and broader inflationary pressures pushed investors towards caution across commodity and financial markets. Expectations that central banks could keep interest rates elevated for longer also weighed on investor appetite for non-yielding assets such as bullion.
Latest Dubai Gold Rates (May 15, 2026):
24 Carat: AED 552.32 – 563.75 per gram
22 Carat: AED 513.71 – 522.00 per gram
21 Carat: AED 490.72 – 500.50 per gram
18 Carat: AED 421.76 – 429.00 per gram
Gold prices often react strongly to shifts in inflation expectations and monetary policy signals. Higher interest rates tend to reduce the appeal of gold because the metal does not generate returns like bonds or savings products.
US gold futures for June delivery also weakened, falling 1.4 per cent to $4,619 during Friday trading. Other precious metals recorded losses as broader market sentiment remained under pressure.
Spot silver fell 3.1 per cent to $80.93 per ounce, while platinum declined 1.7 per cent to $2,021.75. Palladium slipped 0.9 per cent to $1,423.75.
Market analysts said investors are closely monitoring energy prices, inflation data and signals from major central banks over future interest rate decisions. Continued volatility in global commodity markets has increased uncertainty for traders and investors during the second quarter of the year.
Gold prices remain one of the most closely watched indicators during periods of geopolitical tension, inflation uncertainty and changing monetary policy expectations across international markets.
