Dubai gold prices rise after a volatile July, leaving jewellery buyers facing higher costs.
Dubai: Gold prices rose on Monday morning, increasing costs for jewellery buyers after holding steady over the weekend.
The 24-karat gold rate reached Dh488.50 per gram at 8:17 am, rising by Dh1.25 from Dh487.25 on Sunday. Meanwhile, the 22-karat gold price increased by Dh1 to Dh452.25 per gram, compared with Dh451.25 the previous day.
Gold prices rise after a volatile July
Dubai gold rates started August at Dh487.25 per gram for 24-karat gold and Dh451.25 per gram for 22-karat gold. Prices remained unchanged on Saturday and Sunday before rising on Monday.
Compared with July 31, the 24-karat gold rate has increased by Dh3.25 per gram, while the 22-karat rate has gained Dh3 per gram during the first three days of August.
July saw sharp fluctuations in Dubai gold prices
Gold prices in Dubai experienced significant swings throughout July, with the 24-karat rate reaching Dh503 per gram on July 5 before dropping to Dh481.50 on July 16 and 17. Prices later recovered to Dh500.75 on July 22 before declining again in the final days of the month, closing July at Dh485.25 per gram.
The 22-karat category followed a similar trend, falling from Dh466 per gram on July 5 to Dh446 on July 16 and 17. It then rebounded to Dh463.75 on July 22 before ending the month at Dh449.25 per gram.
Iran talks support global gold prices
International gold prices moved higher after US President Donald Trump said new negotiations with Iran were set to begin on Monday, boosting hopes of progress in diplomatic efforts and easing concerns over energy-related inflation.
Global gold prices rise as markets track Iran developments
Bullion prices were trading at around $4,070 an ounce after gaining 1 per cent in July, marking the first monthly increase since February.
Gold markets gained support after US President Donald Trump said he had called off a major attack on Iran following appeals from Middle Eastern allies, including Saudi Arabia, to seek a diplomatic agreement. Meanwhile, benchmark Brent crude prices dropped more than 7 per cent during Asian trading on Monday morning.
Federal Reserve policy remains in focus
Investors are also closely watching developments at the US Federal Reserve after reports that Chairman Kevin Warsh was considering reducing the frequency of policy meetings.
A change of this nature would mark a significant shift for the US central bank, which currently holds eight meetings each year. The Fed recently voted 9-3 to keep interest rates unchanged.
Three Federal Reserve officials who opposed the decision cautioned that delaying policy action could eventually require more aggressive measures, as the central bank continues efforts to manage inflation pressures.
Gold remains more than 20 per cent below levels recorded when the US-Iran conflict began more than five months ago. Rising energy costs have added to inflation concerns and increased expectations that interest rates could remain elevated, creating pressure on precious metals as they do not generate interest income.
