Gold prices in Saudi Arabia and India also increase as global markets rebound.
Dubai: Gold prices in Dubai ticked up on Friday morning, reversing earlier sharp drops from this week as global gold rates recovered. This rise comes despite markets remaining largely subdued to the escalating geopolitical tensions from the ongoing conflict involving the US, Israel and Iran.
The price of 24-karat gold in Dubai rose to Dh565.25 from Dh561.50 yesterday, while 22-karat gold climbed to Dh523.50 from Dh520.00. The increase follows a 1.88% jump in international gold prices to $4,662.97, indicating renewed buying interest after a short correction.
The rebound comes after a sharp decline over the past few days, during which gold prices fell over Dh30 in a single session and more than Dh80 from early March highs.
The earlier dip had created an opportunity for Eid shoppers, with rates easing from over Dh640 earlier this month to the mid-Dh550 range. Today’s rise suggests the correction could be short-lived, especially as global market trends start to shift.
While geopolitical tensions usually boost safe-haven demand, the current gold price movement reflects a more nuanced market dynamic.
The modest rise in Dubai indicates that buyers are cautiously returning to the market, likely motivated by lower prices rather than fear-driven demand.
Regional markets showed similar trends. In Saudi Arabia, 24-karat gold rose to 574.00 from 566.00, while 22-karat increased to 527.00 from 520.00, signaling stronger regional buying sentiment.
India also recorded a rise in gold prices, with 24-karat gold reaching ₹150,930 per 10 grams, up from ₹150,270 yesterday. The 22-karat variety increased to ₹138,350 from ₹137,750. This steady climb highlights ongoing retail demand, particularly ahead of the festive buying season.
International trends
Globally, gold prices are experiencing a technical rebound after a six-day losing streak, although broader market signals remain mixed.
Carsten Menke, Head of Next Generation Research at Julius Baer, noted that precious metals markets are unusually calm given the geopolitical tensions. Gold has recently fallen below key psychological levels, and any support from Middle East conflicts is being counterbalanced by a stronger US dollar, rising US bond yields, and expectations of tighter monetary policy.
The US Federal Reserve’s decision to keep interest rates unchanged has further limited gold’s appeal, reinforcing the “do not fight the Fed” mindset among investors. There is little sign of significant safe-haven buying or bargain hunting, with physically backed gold products continuing to experience outflows.
Julius Baer maintains a constructive long-term view on gold but cautions that a more severe escalation in geopolitical tensions—and a broader risk-off shift in financial markets—would likely be necessary for gold to fully reclaim its safe-haven status. “A worsening of the situation, including a more marked risk-off move in financial markets, would likely be required for gold to shine,” Menke said.
