Gold stabilizes in Dubai after recent volatility, with global risks providing continued price support.
Dubai: Gold prices in Dubai rose Tuesday morning, rebounding slightly after recent drops, as buyers closely monitored global signals amid ongoing geopolitical tensions and inflation worries.
At 9:45 a.m., 24K gold was priced at Dh607 per gram, up from Dh602.50 the previous day, while 22K gold rose to Dh562 from Dh557.75. This modest uptick comes after two weeks of sharp fluctuations driven largely by global market uncertainty.
The recent trend has highlighted significant volatility. Throughout March, prices have swung widely, illustrating how quickly market sentiment can change. Early in the month, 24K gold briefly surged to Dh641 and 22K gold approached Dh594, before easing in the days that followed.
Following that peak, gold experienced a gradual pullback, sliding into the low Dh620s and then dipping further toward the Dh600 level over the past week. Daily price movements remained uneven, with short-lived recoveries alternating with declines, reflecting a market that is highly responsive to global developments.
Global factors continue to keep the market on edge. Internationally, gold has been trading in a narrow range, as investors weigh rising inflation risks against efforts to manage energy market disruptions linked to the Middle East conflict.
Bullion stayed above $2,000 an ounce after a brief dip in the previous session, supported by ongoing demand for safe-haven assets. Oil prices have also remained high following renewed attacks on energy infrastructure in the Gulf and concerns over potential supply disruptions, especially near the Strait of Hormuz.
Rising energy costs have intensified inflation concerns, reducing expectations for near-term interest rate cuts in the US. Traders see little likelihood of a rate reduction at the Federal Reserve’s upcoming meeting, keeping borrowing costs elevated.
Higher rates usually put pressure on gold, as it does not yield interest. However, demand has remained strong this year, supported by geopolitical uncertainty and worries over slower global growth.
Demand remains resilient
Gold has gained roughly 16% since the start of the year, fueled by steady buying across key markets. In China, demand has stayed robust, with investors continuing to add to gold-backed exchange-traded funds in recent weeks, pushing local premiums above global prices.
