Dubai gold rates move higher as 24K gains Dh4.50 on Iran tensions
Silver climbs as precious metals track shifting global risk
DUBAI – Dubai gold rates moved higher on Tuesday, with all three major retail purity rates recording gains compared with Monday.
The Dubai Jewellery Group’s suggested retail jewellery prices showed 24K gold at Dh534.75 per gram, while 22K stood at Dh495 and 18K reached Dh407.
The increases came as international bullion prices recovered amid a weaker US dollar, renewed US-Iran tensions and heightened concerns over energy supplies through the Strait of Hormuz.
Dubai gold rates
The latest Dubai prices represent a rise of Dh4.50 per gram for 24K gold from Monday’s Dh530.25. The 22K rate increased by Dh4 to Dh495 from Dh491, while 18K gold climbed Dh3.50 from Dh403.50. The moves put Dubai’s retail gold market firmly in step with the upward movement in international bullion during Tuesday trading.
Global gold
Spot gold was up 0.6 percent at $4,432.79 per ounce as of 0432 GMT on Tuesday, while US gold futures for December delivery were little changed at $4,478.40. The advance followed declines over the previous two sessions and came as investors assessed the outlook for US monetary policy ahead of key inflation figures due later this week.
The US dollar index slipped 0.3 percent, making dollar-priced gold relatively cheaper for holders of other currencies. The dollar has also been pressured by a stronger Japanese yen, which reached its strongest level against the greenback since February.
US producer price data is due on Thursday, followed by consumer price figures on Friday. The data could influence expectations surrounding the Federal Reserve’s next interest-rate decision. Traders were pricing in about a 58.4 percent probability of a rate hike at next week’s meeting, according to CME FedWatch data cited by Reuters. Higher interest rates generally weigh on non-yielding assets such as gold.
Iran tensions
Geopolitical risks remain a major factor across commodity markets. Iran has threatened the US with economic retaliation and said it launched an advanced missile at US warships, while US forces recently struck three Iranian oil tankers, including one near Kharg Island, Iran’s main oil export hub.
President Donald Trump has maintained that oil prices will eventually fall sharply if the US wins its war with Iran, while the conflict continues to create uncertainty over energy supplies and inflation. Tehran has also threatened to establish a new maritime exclusion zone in the Persian Gulf.
Traffic through the Strait of Hormuz has slowed as tensions rise. Kpler data showed seven commodity vessels passed through the waterway on Monday, compared with eight the previous day. The strait previously carried about one-fifth of global oil and liquefied natural gas shipments.
Oil prices consequently remained elevated, with Brent crude at $97.49 a barrel and US West Texas Intermediate at $92.92. Disruptions have reduced Middle Eastern crude flows from about 18 million barrels per day before the war to roughly 11 million barrels per day, although alternative export routes and partial flows through Hormuz have limited the wider impact.
Other precious metals
Other precious metals also advanced. Spot silver rose 1.2 percent to $66.96 an ounce, while platinum gained 0.6 percent to $1,837.13 and palladium increased 0.6 percent to $1,396.70.