Gold prices in Dubai edge higher after earlier falling from their May highs this week.
Dubai: Gold prices in Dubai ticked up slightly on Tuesday morning, giving shoppers a modest reprieve after rates eased from the highs recorded at the beginning of the month.
The 24-karat gold price in Dubai stood at Dh546.25 per gram at 9:12am on Tuesday, up slightly from Dh546 on Monday. The 22-karat variant also rose marginally to Dh505.75 from Dh505.50.
While the uptick was small, it followed a noticeable decline from the month’s opening levels. The 24-karat rate was Dh557.50 on May 1, eased to Dh556 on May 2 and May 3, and then slipped to Dh546 on May 4. Despite Tuesday’s gain, 24-karat gold remains Dh11.25 per gram lower than at the start of the month.
The 22-karat variety followed a similar trend, easing from Dh516.25 on May 1 to Dh514.75 on May 2 and May 3, before slipping to Dh505.50 on Monday. At Tuesday’s level of Dh505.75, 22-karat gold remains Dh10.50 per gram below its May 1 price.
Global bullion prices rebounded, with the local market mirroring the trend after buyers stepped in following Monday’s decline.
Gold rose after falling 2% on Monday, as traders returned to the market while renewed Middle East tensions kept inflation and interest-rate concerns in focus. Bullion climbed as much as 0.6% to around $4,550 an ounce, while spot gold was up 0.4% at $4,541.79 at 11:14am in Singapore.
The latest movement came amid escalating geopolitical tensions in the Middle East.
Rate risks remained in focus as the violence disrupted a ceasefire that had largely held since April 8, heightening inflation concerns. Oil prices rose on the developments, while 30-year US Treasury yields climbed to their highest level since July, as traders increased bets that the US Federal Reserve may need to raise interest rates to curb inflation.
Higher interest rates typically weigh on gold, as the metal does not yield any income. However, bullion often finds support during periods of geopolitical uncertainty, when investors seek safe-haven assets amid broader market volatility.
Traders are now awaiting this week’s US Treasury borrowing plans, along with a packed schedule of economic data releases, for clearer signals on the interest rate outlook.
Elsewhere in metals, silver gained 0.5% to $73.10, while platinum and palladium also advanced.
