Dubai gold opens higher with 24K at Dh484.50 amid Middle East tensions
Silver gains while oil and dollar remain in sharp focus
DUBAI – Dubai's gold market began the new trading week on a firmer note, with retail jewellery prices moving higher as global bullion markets remained steady despite heightened geopolitical tensions.
The latest rates released by the Dubai Jewellery Group reflected modest gains across all major gold categories.
Monday's opening also comes as investors continue to monitor developments in the Middle East, expectations surrounding US interest rates and movements in energy markets.
Dubai gold rates
The Dubai Jewellery Group's suggested retail rates for Monday showed increases of up to 50 fils per gram compared with Sunday's prices, extending the precious metal's resilience as international markets weighed multiple risk factors.
According to the Dubai Jewellery Group, 24K gold was priced at Dh484.50 per gram. The price of 22K gold rose to Dh448.75 per gram, compared with Dh448.25 a day earlier, while 18K gold increased to Dh368.75 per gram from Dh368.50.
The modest gains followed a largely steady performance in global bullion markets as trading resumed for the week. Dubai's retail gold prices typically mirror movements in international spot prices alongside currency fluctuations, making the emirate one of the closely watched markets for jewellery buyers and investors across the region.
Global markets
In international trading, spot gold was little changed at $4,018.90 per ounce during early Monday trade, while US gold futures for August delivery edged 0.1 percent higher to $4,023.10 per ounce.
Markets remained focused on the escalating conflict involving Iran after US forces carried out a ninth consecutive night of strikes. The renewed military action added to concerns over shipping through the Strait of Hormuz, a vital global energy route, helping push oil prices more than 3 percent higher. Brent crude climbed above $90 per barrel, raising fresh concerns about inflationary pressures.
At the same time, the US dollar and monetary policy expectations stayed in focus after another Federal Reserve official indicated that further interest rate increases could be required if inflation remains persistent. Higher interest rates generally reduce the appeal of non-yielding assets such as gold, even though the metal is widely regarded as a traditional hedge against inflation.
Market participants also increased expectations of another US rate hike later this year, with traders assigning a higher probability to a December increase compared with last week.
Other precious metals
Other precious metals posted mixed performances. Spot silver advanced 1.7 percent to $56.87 per ounce, outperforming gold in early trading.
Platinum held broadly steady at $1,592.34 per ounce, while palladium edged 0.1 percent higher to $1,249.25 per ounce as investors continued to assess demand prospects alongside geopolitical developments and broader commodity market movements.