Dubai gold rates climb by Dh8.50 amid Iran tensions
Silver advances as platinum and palladium also post gains
DUBAI – Dubai gold rates moved higher on Tuesday, with all major retail jewellery categories recording gains as international bullion prices climbed to their highest level in more than two months.
The latest rates from the Dubai Jewellery Group showed 24K gold at Dh531.25 per gram, while 22K stood at Dh492 and 18K reached Dh404.25. The increases came as global gold extended its winning run amid renewed safe-haven demand and expectations surrounding upcoming US inflation data.
Dubai gold rates
The Dubai Jewellery Group's suggested retail jewellery price for 24K gold was Dh522.75 per gram on Monday, meaning the rate increased by Dh8.50 in one day. The 22K rate rose from Dh484 to Dh492, while 18K climbed from Dh397.75 to Dh404.25.
The latest move puts all three monitored categories above their previous-day levels as international markets continue to influence bullion prices in the UAE.
Global market
Spot gold rose 1 percent to $4,432.74 per ounce by 0217 GMT on Tuesday, reaching its highest level since June 5. US gold futures gained 1.7 percent to $4,492.60. The advance marked a third consecutive session of gains, with investors turning their attention to the US consumer price report due on Wednesday and producer price data scheduled for Thursday.
The inflation figures are being closely watched for their potential impact on expectations for US interest rates. The Federal Reserve kept rates unchanged at its July meeting, while weak July employment data had already prompted markets to scale back expectations of tighter monetary policy. Gold generally benefits from lower interest-rate expectations because bullion does not pay interest. A softer dollar can also make gold more attractive to holders of other currencies, although the latest market reporting focused on the dollar's vulnerability rather than providing a specific index level.
Geopolitical developments are adding another layer of uncertainty. US President Donald Trump has demanded that Iran pay compensation linked to people killed in wars, attacks and protests, after Tehran set conditions surrounding a potential reopening of the Strait of Hormuz. The dispute has complicated efforts to restore normal shipping through the strategic waterway.
Oil prices remained elevated as doubts grew over progress towards a US-Iran peace agreement and the reopening of the Strait of Hormuz. Brent crude was holding around $87.81 a barrel, while US West Texas Intermediate stood at $82.20, with both benchmarks retaining gains of more than 5 percent from the previous session.
The Strait remains a major focus for energy markets because disruptions to shipping can affect global crude supplies. Reuters reported that oil exports through the waterway fell to about 3 million barrels per day in the week ending August 7, down from 4.4 million barrels per day a week earlier.
Other precious metals
Other precious metals also moved higher alongside gold. Spot silver rose 0.9 percent to $66.30 per ounce, while platinum gained 0.7 percent to $1,765.26 and palladium advanced 0.8 percent to $1,394.00.
The gains across the precious-metals complex came as investors assessed inflation risks, interest-rate expectations and heightened geopolitical uncertainty, with gold leading the broader move higher in international markets.