Dubai Gold Prices Rise as Global Bullion Tops $4,100
Dubai rates climb while investors watch Middle East tensions and the Federal Reserve decision.
Dubai gold prices went up on Monday, with buyers paying as much as Dh5 more per gram than the day before.
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The 24-karat gold rate stood at Dh493.50 per gram at 8.41am, up from Dh488.50 on Sunday. The 22-karat price also increased to Dh457 from Dh452.25.
The latest move brought gold back to levels seen earlier in July, although prices are still below this month’s high and under the Dh500 mark crossed last week.
Gold prices have seen several ups and downs in July. The 24-karat rate started the month at Dh489.75 before moving above Dh500 in the first week.
It touched Dh503 on July 4 and July 5, which was the highest level so far this month. During the same period, 22-karat gold reached Dh466.
Prices then came down, with 24-karat gold falling to Dh481.50 on July 16 and July 17, while 22-karat gold dropped to Dh446.
The market later recovered. 24-karat gold rose from Dh483 on July 20 to Dh500.75 on July 22. It then slipped back to Dh487.50 the next day before rising again to Dh493.50 on Monday.
At Monday’s level, 24-karat gold is Dh9.50 below this month’s peak and Dh12 above July’s lowest point. The 22-karat rate is Dh9 below its monthly high and Dh11 above its monthly low.
International gold moves above $4,100
Global gold prices also rose, climbing as much as 1.6% to move above $4,100 an ounce after adding nearly 1% last week.
The increase came after fighting between the US and Iran paused over the weekend. This helped ease concerns about oil supply and inflation.
The US stopped an almost two-week series of strikes against Iran without any clear explanation or announcement. At the same time, Iran said it was avoiding retaliation and held talks with Oman on shipping through the Strait of Hormuz.
Oil prices fell at the start of the week. Brent dropped more than 7% to below $90 a barrel in early trade before recovering some of the losses.
This came even after missile attacks claimed by Tehran-backed Houthis in Yemen on facilities linked to Saudi Aramco in the Red Sea port towns of Jizan and Yanbu.
Federal Reserve decision in focus
Gold has stayed close to $4,000 an ounce since late June. Buyers stepping in during dips have helped support the metal above this key level.
Bullion is still more than 20% below its level before the US and Israel launched strikes on Iran in late February. That ended a strong multi-year rally that had pushed gold to a record near $5,600 an ounce a month earlier.
Fresh tensions in the Middle East have raised inflation worries in recent weeks and increased the chance of higher US interest rates. This has put pressure on gold, since the metal does not offer yield.
Now, market attention is on the Federal Reserve’s interest-rate decision this week. Higher energy costs are coming alongside a lower-than-expected US consumer price reading for June.
AI contributed to the creation of this article.