Prices fluctuate through April as global tensions ease, though risks continue to linger.
Dubai: Gold prices in Dubai rose on Monday morning, partially recovering from a recent decline and reflecting a shift in global sentiment following signs of easing geopolitical tensions.
At 8:42 am, 24K gold was priced at Dh573.50 per gram, up from Dh569.75 on Sunday. The 22K variant rose to Dh531 from Dh527.75, bringing prices closer to earlier levels seen in the month.
The increase follows a broader rebound in international markets, where bullion recovered after two consecutive sessions of losses. The uptick came as diplomatic signals between the US and Iran raised hopes of a negotiated outcome, easing some of the inflation concerns that had been driving recent volatility.
April sees sharp swings
Price movements through April reflect a market struggling to find clear direction. Gold began the month near Dh573 per gram before gradually falling to around Dh561 by April 6, marking one of the sharper declines early in the month.
Momentum then shifted quickly. Prices rose to a peak of around Dh577 by April 9, driven by heightened geopolitical tensions and strong safe-haven demand. However, the rally was short-lived, with gold easing back toward the Dh569 range over the weekend before Monday’s recovery.Global cues driving local prices
Internationally, bullion climbed to nearly $4,770 an ounce, recovering some of the losses recorded over the previous two sessions. The move came even as the US maintained a tighter stance in the Strait of Hormuz, while also signalling openness to negotiations.
US President Donald Trump said Iranian officials had approached his administration with the intention “to work a deal.” Iranian President Masoud Pezeshkian also stated that Tehran remained open to continuing talks within international legal frameworks.Oil prices fell below $100 a barrel, easing pressure on inflation expectations. Equity markets rose, while the US dollar weakened slightly, creating a supportive environment for gold, which is priced in dollars.
Lower energy costs have reduced some of the inflation-driven demand that had previously supported bullion during the conflict. This shift has also influenced expectations around interest rates, with markets still pricing in only a limited chance of US Federal Reserve rate cuts this year.
What it means for buyers
Despite the recent rebound, gold remains under pressure compared to peak levels seen in the early stages of the conflict. Prices are still about 10% lower than their recent highs, when investors rushed into safe-haven assets.
Recent trading patterns suggest buyers are stepping in during dips, but overall conviction remains cautious. The market continues to balance easing inflation concerns against the risk of renewed disruption, particularly as tensions around the Strait of Hormuz persist.
