Investors in the UAE and global markets are awaiting further details on the US–Iran peace agreement, along with the US Federal Reserve’s interest rate decision due later today.
Gold prices in Dubai remained steady for the second consecutive day on Wednesday as investors awaited key global developments, including details of the US–Iran peace agreement and the US Federal Reserve’s upcoming interest rate decision.
At the market open on Tuesday, 24K gold was priced at Dh521.25 per gram and 22K gold at Dh482.50 per gram.
Among other variants, 21K was trading at Dh462.75 per gram, 18K at Dh396.75 per gram, and 14K at Dh309.25 per gram.
Spot gold fell 0.28% to $4,323 per ounce, while silver remained steady at $69.93 per ounce.
US President Donald Trump said the text of the US–Iran peace deal will be released soon, adding that Tehran and Washington are expected to sign the agreement in Switzerland on Friday. The US Federal Reserve is also due to announce its interest rate decision later today.
Ahmad Assiri, Research Strategist at Pepperstone, said that over the past three months, gold has been caught in a counterintuitive dynamic where escalating Middle East tensions were viewed not as a safe-haven trigger, but as an inflation driver.
He explained that concerns over disruptions to shipping through the Strait of Hormuz pushed energy prices higher, lifting US inflation above 4%, which in turn strengthened expectations of tighter monetary policy and weighed on gold.
“This dynamic is now shifting with the emergence of what is expected to be a US–Iran peace framework, although markets are still treating early optimism cautiously,” Assiri said.
He added that clear and sustained confidence-building measures, particularly stable logistical flows through Hormuz, will be needed before markets fully price in the agreement.
“If the risk of broader regional escalation recedes, the inflationary pressure it created will also ease, which would ultimately support gold,” he said, noting that earlier geopolitical tensions had been weighing on gold by reinforcing hawkish Fed expectations rather than boosting safe-haven demand.
