Dubai: Gold prices in Dubai fell on Friday, bringing a volatile month to a close after rates moved through a range of more than Dh21 for 24-karat gold.The 24K variety dropped to Dh491.75 per gram from Dh495.50 on Thursday, marking a decline of Dh3.75. The 22K rate fell by Dh3.25 to Dh455.50 from Dh458.75.Friday’s decline leaves buyers paying Dh11.25 less per gram for 24K gold than at the month’s highest level of Dh503, recorded on July 4 and July 5.Prices moved through a wide rangeDubai gold rates moved repeatedly above and below Dh490 during July, reflecting changes in international bullion prices and the US dollar.The 24K rate began the recorded period at Dh494.75 on July 2 before climbing above Dh500 during the first week. It reached Dh503 on July 4 and July 5, then fell to the month’s low of Dh481.50 on July 16 and July 17.Prices recovered to Dh500.75 on July 22 before easing again, falling to Dh485 on July 28 and closing the month at Dh491.75.The 22K variety followed a similar path, reaching a monthly high of Dh466 on July 4 and July 5 before falling to Dh446 in the middle of the month. It later climbed to Dh463.75 on July 22 and ended July at Dh455.50.Gold heads for monthly gainInternational gold was on course for its first monthly advance since February, supported by the US Federal Reserve’s decision this week to leave interest rates unchanged amid inflation pressures linked to the Iran war.Bullion traded near $4,080 an ounce and was heading for a July gain of almost 2%, despite falling by as much as 0.8% on Friday.The US dollar recovered against the yen after dropping during overnight trading following what appeared to be intervention by Japan in the foreign-exchange market.A gauge of the dollar fell 0.9% on Thursday, making dollar-priced gold cheaper for many international buyers, before recovering by as much as 0.3% on Friday.Interest rates remain in focusGold has fallen by more than 20% since the US-Iran war began more than five months ago, with higher energy costs adding to inflation and increasing expectations that interest rates could remain elevated.Higher borrowing costs tend to weigh on gold because the metal does not pay interest, although buying during price declines has helped keep bullion above $4,000 an ounce in recent weeks.Traders are now watching for further signals on the Federal Reserve’s next move after policymakers voted 9-3 to hold rates steady.“If inflation continues to be elevated through the forecast period, interest rates could well be part of that solution, but I wouldn’t say it’s in isolation,” Federal Reserve Chairman Kevin Warsh said.The Jackson Hole Economic Policy Symposium in late August could provide the next major signal for gold markets, with the Federal Reserve chair traditionally using the gathering to set out the central bank’s policy direction.Regional tensions remain a factorThe US and Iran exchanged strikes again this week, with Washington targeting dozens of sites in Iran on Wednesday following attacks on American military bases in the region.Saudi Arabia has also discussed creating a multinational alliance to protect shipping routes in and around the Red Sea, keeping geopolitical risks and their impact on energy prices in focus.Nivetha Dayanand is Assistant Business Editor at Gulf News, where she spends her days unpacking money, markets, aviation, and the big shifts shaping life in the Gulf. Before returning to Gulf News, she launched Finance Middle East, complete with a podcast and video series.