Dubai gold rebounds as global bullion prices rise following optimism around a US-Iran interim peace deal.
Dubai: Gold prices in Dubai climbed on Thursday morning, reversing Wednesday’s decline as global bullion strengthened after the signing of an interim US–Iran peace agreement, boosting investor sentiment.
The 24-karat gold rate in Dubai stood at Dh519.75 per gram at 9.22am, up from Dh508.25 on Wednesday—an increase of Dh11.50 in a single day. Meanwhile, the 22-karat variant rose to Dh481.50 per gram from Dh470.75, gaining Dh10.75 over the same period.
The rebound has brought Dubai gold prices back close to earlier levels seen this week, though they still remain below the month’s highs recorded at the beginning of June.
Prices swing through June
Gold has experienced significant fluctuations in Dubai this month, driven by shifting geopolitical tensions, movements in oil prices, and changing expectations around US interest rates, all of which have kept both buyers and investors cautious.
The 24-karat rate started June at Dh539.75 per gram and rose to a monthly high of Dh542.50 on June 2. It then eased to Dh536 on June 3 and Dh538.50 on June 4 before declining to Dh522.50 on June 5.
Prices hovered around Dh521.75 on June 6 and June 7, slipped slightly to Dh521.50 on June 8, and fell further to Dh514.25 on June 9. The sharpest decline came on June 10, when 24-karat gold dropped to Dh492.50—its lowest level so far this month.
The rate subsequently recovered to Dh506.50 on June 11 and remained around Dh508.50 between June 12 and June 14. It climbed back above Dh520 on June 15 and June 16, before easing to Dh508.25 on June 17 and rebounding again on Thursday.
The 22-karat variety followed a similar trajectory, starting the month at Dh500 per gram and peaking at Dh502.25 on June 2. It dropped to a monthly low of Dh456 on June 10 before recovering to Dh481.50 on Thursday.
Oil prices declined after the agreement, with markets expecting the deal to ease the global energy shock that had previously driven inflation higher and strengthened expectations of interest rate hikes. However, traders remain cautious, as it may take time for fuel prices to normalise and for shipping through key routes to return to pre-conflict levels.
Fed outlook still weighs
The US Federal Reserve kept interest rates unchanged on Wednesday, reiterating its focus on price stability while removing language that previously pointed to potential additional rate adjustments.
Markets are now fully pricing in the possibility of monetary tightening by October. Higher interest rates typically weigh on gold, as the metal does not yield interest, making it less attractive compared to cash and bonds when returns rise.
