Dubai 24K gold gained Dh3.75 overnight and now sits only Dh7.25 below its July peak.
Dubai’s gold market is approaching the Dh500-per-gram level once more, with 24K rates rising to Dh495.75 following a five-day surge.
The price gained Dh3.75 overnight, moving up from Dh492 on Tuesday and leaving 24K gold just Dh4.25 short of the Dh500 level.
Dubai’s 22K gold price rose Dh3.50 to Dh459 per gram, up from Dh455.50 on the previous day.
Gold rebounds from July low
The latest gain continues a recovery trend that started after 24K gold slipped to Dh481.50 on July 16 and 17, marking its lowest point of the month so far.
Gold prices in Dubai have rebounded by Dh14.25 per gram since hitting their July low, with most of the gains coming during the past three trading sessions. The 24K gold rate climbed from Dh483 on Monday to Dh492 on Tuesday before reaching Dh495.75 on Wednesday.
The recovery has pushed prices closer to July’s peak of Dh503, recorded on July 4 and 5, with the current 24K rate now just Dh7.25 below that level.
The 22K gold rate has mirrored the upward trend, rising Dh13 from its monthly low of Dh446 and moving within Dh7 of its July high of Dh466.
Compared with the start of the month, gold prices are also higher. The 24K rate has increased by Dh6 from Dh489.75 on July 1, while 22K gold has gained Dh5.50 from its July opening price of Dh453.50.
Global gold prices climb above $4,100
Dubai’s gold market followed the upward movement in international bullion prices, with gold rising as much as 1% to trade above $4,100 an ounce.
The latest increase extended the previous session’s gain of nearly 2%, while silver prices moved closer to the $60-an-ounce mark.
Investors returned to the market following the recent decline, despite higher US Treasury yields continuing to weigh on demand for the non-yielding precious metal.
Gold-backed ETFs attract fresh inflows
Investment returned to gold-backed exchange-traded funds, with total holdings increasing by around 7.4 tonnes on Tuesday, according to a Bloomberg tally. It marked the strongest daily inflow in more than a month.
The rise in ETF demand suggests some investors are rebuilding their gold positions after prices fell sharply from their January record high.
Middle East tensions remain a key market driver
Gold prices continued their upward move as tensions between the US and Iran showed few signs of easing.
US President Donald Trump downplayed the chances of immediate talks with Iran after both sides exchanged strikes near the Strait of Hormuz. Meanwhile, Yemen’s Houthi militants renewed threats against shipping activity in the Red Sea, adding to geopolitical concerns.
The remarks came as US and Iranian strikes entered their 10th consecutive day, while mediators continued efforts to bring both sides back to the negotiating table.
Oil prices extended their gains on Wednesday and have posted a strong rise in July since hostilities resumed. Higher energy costs could fuel inflation concerns, while elevated borrowing costs often put pressure on gold as the metal does not generate interest income.
The US-Iran conflict halted gold’s extended rally earlier this year, with bullion prices falling about 25% from their January peak of nearly $5,600 an ounce.
Traders are now balancing the impact of rising oil prices with weaker US economic indicators, while awaiting further clues on the Federal Reserve’s interest-rate outlook.
According to the latest market update, gold is expected to rise to $4,450 an ounce, while silver is forecast to reach $65.40 an ounce in the fourth quarter.
