24K gold climbs to Dh569.50 per gram, while 22K rises to Dh527.25 in Dubai.
Dubai: Gold prices in Dubai moved slightly higher on Monday morning, but rates remain well below the peaks recorded earlier this month, offering jewellery buyers a more favourable entry point compared to the mid-April highs.
The 24-karat variety climbed to Dh569.50 per gram at 9:35 am, up from Dh567.50 on Sunday, while 22-karat gold rose to Dh527.25 from Dh525.50, according to Dubai retail gold rate data.
The latest increase means 24K gold is still Dh18.50 per gram below its April 17 peak of Dh588, while 22K remains Dh17.25 lower than its April high of Dh544.50, offering buyers some relief despite Monday’s uptick.
Prices remain below April highs
Dubai gold prices have fluctuated across a wide range this month, with 24K starting April at Dh573 per gram before dropping to Dh563 on April 2 and hovering around Dh563.50 for the following three days.
The rate then recovered during the second week, reaching Dh577.25 on April 9 and Dh575 on April 10, before climbing further to Dh582 on April 14 and Dh578 on April 15.
The sharpest rise came in mid-April, when 24K increased to Dh577.75 on April 16 and then touched Dh588 on April 17, its highest level in the available April data. Prices remained elevated at Dh582.25 on April 18 and 19 before easing to Dh580.50 on April 20, then dropped back to Dh565 on April 21.
The final week of April has been relatively stable, with 24K trading between Dh565.75 and Dh569.50 from April 23 to April 27. The 22K rate followed a similar trend, moving from Dh530.75 on April 1 to Dh521.25 on April 2, rising to Dh544.50 on April 17, then falling to Dh523 on April 21 before recovering to Dh527.25 on Monday.
Global cues continue to shape local rates
Global bullion remained sensitive to geopolitical developments, with gold fluctuating after efforts to revive peace talks between the US and Iran stalled, while energy flows through the Strait of Hormuz remained under pressure.
Gold rose by as much as 0.4 per cent to $4,730 an ounce after an earlier decline, following reports that Iran had presented the US with a new proposal to reopen the strait while delaying talks on its nuclear programme.
Oil prices also climbed on Monday before trimming some gains, as traders monitored whether disruptions to energy supplies would keep inflation risks elevated and prompt central banks to remain cautious on interest rates.
Michael Brown, Senior Research Strategist at Pepperstone, said markets were still leaning towards de-escalation despite the failed weekend attempt to restart talks.
“I would not describe the weekend’s developments as any form of escalation or as something that changes the broader direction, which still points towards a deal being reached,” Michael Brown said.
Higher interest rates typically weigh on gold because bullion does not generate yield, but geopolitical uncertainty and inflation concerns continue to support demand for the metal.
Brown added that investors are also watching a busy week for global markets, with major central bank decisions, US and eurozone GDP figures, inflation data, and a heavy earnings calendar likely to shape risk appetite.
“Although geopolitical events will remain in focus this week, a busy economic calendar also lies ahead,” he said.
A stronger global gold price, rising oil-driven inflation concerns, or renewed geopolitical tensions could push local gold rates higher again. On the other hand, progress in diplomatic talks or a stronger US dollar could help ease pressure on bullion prices.
