Investors were evaluating reports of a US–Iran ceasefire agreement while also weighing concerns over inflation and the outlook for US Federal Reserve interest rate policy.
Gold prices in Dubai extended their recovery on Friday morning after falling to a two-month low earlier in the week.
24K gold was trading at Dh544.0 per gram at market open, up from Dh541.25 per gram at Thursday’s close. It had previously dropped to Dh537.0 per gram on May 27.
Among other variants of the precious metal, 22K, 21K, 18K and 14K gold also opened higher at Dh503.75, Dh483.0, Dh414.0 and Dh323.0 per gram respectively. The 22K gold rate had previously slipped below Dh500 per gram on May 27.
Spot gold was trading at $4,511 per ounce, up 0.22 per cent, as investors weighed reports of a potential US–Iran ceasefire agreement amid ongoing concerns about inflation and possible US interest rate hikes.
The US and Iran have reportedly agreed to extend their ceasefire and ease restrictions on shipping through the Strait of Hormuz, according to sources cited by Reuters, although US President Donald Trump has not yet approved the deal and Iranian state media said it has not been finalised.
Inflation in the US rose at its fastest pace in three years in April, driven by higher energy costs linked to the Iran conflict, reinforcing expectations that the Federal Reserve may keep interest rates unchanged well into next year.
Silver remained steady at $75.72 per ounce.
Vijay Valecha said the overall technical outlook for gold remains positive.
