Dubai shoppers find 24K gold at Dh503.75 per gram following a weekend decline, remaining under early June highs.
Dubai: Gold prices in Dubai rose slightly on Monday morning, offering shoppers a modest uptick from the weekend, while still remaining well below the peaks recorded earlier this month.
The 24-carat variant was priced at Dh503.75 per gram at 9:14 am, up from Dh500.75 on Sunday, while 22-carat gold stood at Dh466.50, compared with Dh463.75 the previous day.
Prices remain below June highs
Monday’s gains come after a volatile month for UAE gold buyers, with 24-carat gold reaching a peak of Dh542.50 on June 2 before easing through mid-month. The latest price remains nearly Dh39 below that high, offering some relief to shoppers who postponed purchases during the early-June surge.
The 22-carat variant has followed a similar trend, declining from Dh502.25 on June 2 to Dh466.50 on Monday morning. Prices briefly climbed back above Dh520 for 24-carat gold on June 15 and 16, before slipping again to below Dh510 later in the week.
Dubai rates stood at Dh509.25 for 24-carat gold and Dh471.50 for 22-carat on June 18, before easing to around Dh500 on June 19 and remaining near that level over the weekend. Monday’s uptick reflects a slight recovery from those lows, although prices are still well below the month’s opening highs, keeping overall costs comparatively lower for buyers.
Global gold steadies after talks progress
International gold prices edged higher as negotiators reported progress in discussions between the US and Iran, aimed at reaching a lasting resolution to the conflict that has disrupted global markets.
Bullion rose by as much as 1.6%, briefly moving above $4,220 an ounce and recovering last week’s losses, after Qatar and Pakistan said in a joint statement that “encouraging progress” had been made in the first round of high-level peace talks in Switzerland.
Talks are expected to continue through the week, helping to ease concerns after US President Donald Trump issued a fresh threat of strikes against Iran.
A communication channel has also been established between Tehran and Washington to help ensure the safe passage of commercial vessels through the Strait of Hormuz. Oil prices declined on Monday, while crude shipments continued to move through the strait over the weekend.
The US and Iran signed a memorandum of understanding last week, initiating a de-escalation process and opening a 60-day window for further negotiations.
Why gold has not fully recovered
Gold has declined for three consecutive weeks and is now down about a fifth since the conflict began at the end of February. The near-closure of the Strait of Hormuz disrupted oil and natural gas flows, driving up energy prices and increasing the risk that central banks may keep interest rates elevated to contain inflation.
Higher interest rates are typically negative for gold, as the metal does not generate yield, making it less attractive when returns on interest-bearing assets remain elevated.
New Kevin Warsh struck a hawkish tone on inflation during his first policy meeting last week, without providing a clear signal on the future direction of interest rates.
Traders are now focusing on the upcoming US Personal Consumption Expenditures (PCE) price index, due Thursday, which is expected to indicate a faster pace of inflation.
