Dubai gold rates hold firm with 24K at Dh522.75 as markets track Iran
Silver edges higher while platinum gains and palladium slips
DUBAI – Dubai gold rates remained elevated on Monday, with the latest Dubai Jewellery Group retail prices putting 24K gold at Dh522.75 per gram.
The precious metal market is being closely watched as international bullion prices retreat slightly from a seven-week high reached last week.
Currency movements, shifting US interest rate expectations and renewed uncertainty surrounding the Strait of Hormuz are all influencing sentiment across global markets.
Dubai gold rates
According to the Dubai Jewellery Group's suggested retail gold jewellery prices for August 10, 24K gold was priced at Dh522.75 per gram, while 22K stood at Dh484.00. The rate for 18K gold was Dh397.75 per gram.
The Dubai prices come as spot gold eased after reaching its highest level since June 17. The metal was down 0.3 percent at $4,330.46 an ounce as of 0443 GMT on Monday, while US gold futures slipped 0.2 percent to $4,390.60.
Global bullion
Gold's latest move follows a sharp rise last week after unexpectedly weak US employment data reduced expectations of an imminent Federal Reserve interest rate increase. The US economy shed 23,000 jobs in July, while employment gains for the previous two months were revised lower, prompting markets to reassess the outlook for monetary policy.
The focus has now shifted to US inflation figures due later this week. Consumer Price Index data is scheduled for Wednesday, followed by Producer Price Index figures on Thursday. Softer inflation could reinforce expectations that the Federal Reserve will keep interest rates unchanged at its September meeting, while stronger figures could revive rate-hike speculation.
The US dollar has also been under pressure. The dollar index was little changed at 99.6 on Monday, hovering around its lowest level since June 2, as investors awaited the inflation data and reassessed the Federal Reserve's policy outlook. The weaker dollar has provided support for gold, which is priced in the US currency.
Iran tensions
Geopolitical developments remain another key influence on precious metals. Iran said an agreement with Oman defining new shipping lanes through the Strait of Hormuz was nearing completion, but Tehran also maintained that the waterway would not fully reopen until the United States meets several conditions.
The uncertainty has also pushed oil prices higher. Brent crude rose around 1 percent to $84.40 a barrel, while US crude gained 0.8 percent to $78.80 as shipping through the strategic waterway remained limited. The Strait of Hormuz has historically carried about one-fifth of global oil and liquefied natural gas flows, making developments around its reopening important for energy markets.
US President Donald Trump has recently expressed optimism over progress towards an arrangement involving Iran and the Strait, but Iran continues to tie reopening conditions to US concessions. The continuing uncertainty has kept energy and financial markets sensitive to developments around the waterway.
Other precious metals
Silver was also firmer, with spot silver rising 0.3 percent to $63.77 an ounce. Platinum gained 0.2 percent to $1,748.80, while palladium moved in the opposite direction, falling 1 percent to $1,364.55.
The precious metals complex is therefore entering the week with several competing influences, from softer US employment data and a weaker dollar to inflation expectations, oil prices and the uncertain status of the Strait of Hormuz.