Dubai gold rates jump by up to Dh3.50 per gram as global prices climb 1pc
Silver extends gains as precious metals rally worldwide
DUBAI – Dubai's gold market recorded another increase on Tuesday, with jewellery prices climbing across all major purities in line with stronger international bullion markets.
The latest rates released by the Dubai Jewellery Group showed higher prices for 24K, 22K and 18K gold after gains in global spot and futures markets.
The rise comes as investors continue to monitor geopolitical developments in the Middle East, movements in oil prices and expectations surrounding future US interest rate decisions.
Dubai gold rates
According to the Dubai Jewellery Group's suggested retail jewellery prices for Tuesday, 24K gold rose to Dh488.00 per gram, while 22K increased to Dh452.00 per gram. The price of 18K gold climbed to Dh371.50 per gram.
The latest rates represent a clear increase from Monday's levels. On July 20, 24K gold stood at Dh484.50 per gram, meaning it gained Dh3.50. Meanwhile, 22K gold rose from Dh448.75 to Dh452.00, an increase of Dh3.25 per gram, while 18K advanced by Dh2.75, moving from Dh368.75 to Dh371.50 per gram.
The upward movement in Dubai closely tracked international bullion markets, where investors returned to gold amid continued uncertainty over geopolitical tensions and the outlook for inflation and monetary policy.
Global markets
International gold prices climbed by more than 1 percent on Tuesday after markets assessed diplomatic efforts aimed at easing tensions between the United States and Iran. Spot gold rose 1.2 percent to $4,054.24 per ounce, while US gold futures for August delivery gained 1.1 percent to $4,059.10 per ounce.
Markets reacted after reports that Tehran had received a proposal from mediators for a 10-day ceasefire, an initiative intended to support negotiations towards a broader agreement. At the same time, investors continued to watch developments involving Yemen's Houthis, who announced a naval blockade targeting Saudi Arabia, while fresh exchanges between the US and Iran added to regional uncertainty.
The conflict had pushed oil prices to their highest level in more than a month on Monday, raising concerns that higher energy costs could sustain inflation. Oil prices, however, eased on Tuesday as hopes for diplomacy reduced some immediate supply concerns linked to regional shipping routes, including the strategically important Strait of Hormuz.
The evolving geopolitical situation also remains closely linked to expectations for US monetary policy. Although the Federal Reserve is widely expected to leave interest rates unchanged at next week's meeting, traders are currently pricing a 64 percent probability of a rate increase in September. Higher borrowing costs generally reduce the appeal of non-yielding assets such as gold.
Other precious metals
Other precious metals also advanced during Tuesday's trading session. Spot silver recorded the strongest performance, rising 2.8 percent to $57.99 per ounce. Platinum gained 1 percent to $1,610.06 per ounce, while palladium added 1.2 percent to $1,267.68 per ounce, reflecting broader strength across the precious metals market as investors continued to respond to geopolitical developments, oil price movements and changing interest rate expectations.