Dubai gold rates climb after 2pc global surge on US-Iran deal
Silver and platinum rally alongside shifting global market signals
DUBAI – Dubai gold rates moved higher on Monday, with retail prices from the Dubai Jewellery Group showing gains across all major categories as international bullion markets extended their rally.
Dubai gold rates
The price of 24K gold reached Dh521.75 per gram, while 22K stood at Dh483.00 per gram. Lower purities also recorded strong levels, with 21K priced at Dh463.25 and 18K at Dh397.00 per gram.
The rise in Dubai’s gold market came as global bullion prices jumped after the United States and Iran reached an initial agreement aimed at ending their conflict, reducing concerns over energy disruptions and inflation pressures. The development pushed investors towards gold, while a weaker US dollar added further support to dollar-priced bullion.
Global gold rally
Spot gold climbed 2.5% to $4,323.29 per ounce by 0536 GMT, marking its highest level since June 9 and extending gains for a third consecutive session. US gold futures for August delivery also advanced 2.5% to $4,343.80 per ounce.
The agreement between US and Iranian officials includes a framework to end the conflict, halt the US blockade of Iran and reopen the Strait of Hormuz, a key global oil shipping route. The expected reduction in geopolitical risks sent oil prices lower, with crude prices falling more than 4%, easing concerns over energy-driven inflation.
The US dollar slipped to a 10-day low, making gold more affordable for holders of other currencies and adding momentum to the precious metal’s move higher. Markets also adjusted expectations around US interest rates, with the probability of a December rate hike falling to 48% from 69% last week, according to the CME FedWatch tool.
Gold had declined around 20% since the start of the US-Israeli war against Iran in late February, as the effective closure of the Strait of Hormuz triggered a sharp rise in oil prices and increased expectations that interest rates could remain elevated for longer.
The latest developments have shifted market attention towards the Federal Reserve’s upcoming policy decision and comments from Chair Kevin Warsh, with interest rates widely expected to remain unchanged. Investors are also monitoring whether reduced energy pressures and improving geopolitical conditions continue to influence bullion demand.
Gold remains closely watched as concerns over currency weakness, fiscal risks and global uncertainty continue to shape long-term investor interest.
Other precious metals
Other precious metals also recorded notable gains. Spot silver increased 3.3% to $70.19 per ounce, while platinum rose 2.8% to $1,765.40 per ounce. Palladium gained 3.1% to $1,323.22 per ounce.