Dubai gold rates climb to Dh524 as precious metal rebounds from weekly losses
Silver rebounds as oil and Middle East tensions keep markets volatile
DUBAI – Dubai gold prices moved higher on Saturday, with the 24K rate rising to Dh524 per gram from Dh522 on Friday, according to the Dubai Jewellery Group's suggested retail gold jewellery prices.
The increase comes after a volatile week for the precious metal, which has been pulled between safe-haven demand, shifting US interest-rate expectations and geopolitical risks.
The 22K rate rose to Dh485.25, compared with Dh483.50 on Friday, while 18K gold increased to Dh398.75 from Dh397.25. All three key retail rates remain above their levels at the beginning of the week despite a sharp midweek retreat.
Compared with Monday, when 24K gold stood at Dh514, Saturday's rate is Dh10 higher. The 22K price has gained Dh9.25 from Dh476, while 18K has climbed Dh7.50 from Dh391.25.
Weekly moves
Gold began the week at Dh514 for 24K on Monday and rose to Dh523.25 on Tuesday. The rate then advanced to Dh528 on Wednesday before reaching a weekly high of Dh531.25 on Thursday.
The sharp reversal came on Friday, when 24K gold dropped Dh9.25 to Dh522. The latest Saturday price represents a Dh2 recovery from Friday, while remaining Dh7.25 below Thursday's peak.
The pattern was similar across other purities. The 22K rate moved from Dh476 on Monday to Dh484.50 on Tuesday and Dh489 on Wednesday before reaching Dh492 on Thursday. It then fell to Dh483.50 on Friday and recovered to Dh485.25 on Saturday.
For 18K gold, the price climbed from Dh391.25 on Monday to Dh398.25 on Tuesday and Dh401.75 on Wednesday, before reaching Dh404.25 on Thursday. It slipped to Dh397.25 on Friday and recovered to Dh398.75 on Saturday.
Global market
Internationally, spot gold rose more than 1% on Friday as investors bought after recent losses. Reuters reported spot gold at $4,363.01 per ounce, although it remained about 1.5% lower for the week. US gold futures settled nearly unchanged at $4,408.90.
The rebound came despite stronger expectations of a Federal Reserve rate increase next week. US consumer prices rose 0.4% in August, while markets were pricing an 87% probability of a Fed rate hike, up from 67% before the inflation data. Higher interest rates can weigh on gold because the metal does not generate interest.
The US dollar was broadly steady on Friday after gaining 0.4% against major currencies on Thursday. At the same time, President Donald Trump's comments that the Iran conflict could continue beyond the November midterm elections added to market uncertainty.
Oil prices also remain a major influence. Brent crude settled at $104.61 a barrel on Friday, while WTI ended at $100.05, with both benchmarks still recording weekly gains of more than 8%. Trading through the Strait of Hormuz remains severely restricted amid the conflict, while efforts to discuss arrangements for shipping through the waterway have added to day-to-day price swings.
Other precious metals
Silver also recovered on Friday, with spot silver rising 1.6% to $64.54 an ounce, although it remained down 2.6% for the week. Platinum gained 1% to $1,792.11, while palladium advanced 2.1% to $1,308.63, with both still heading for weekly losses.
The combination of elevated oil prices, geopolitical uncertainty around Iran and the Strait of Hormuz, and changing expectations for US monetary policy continues to keep precious-metal markets highly sensitive to fresh economic and regional developments.