Precious metal prices in the United Arab Emirates and globally could remain under pressure if inflation concerns intensify and both yields and the US dollar move higher.
Gold prices in the UAE recovered on Friday as easing geopolitical tensions in the Middle East—following U.S. President Donald Trump’s decision to cancel planned strikes on Iran—boosted investor sentiment and softened safe-haven demand.
In the UAE, 24K gold was trading at Dh505 per gram in the morning session, down Dh1.5 from the previous night’s close, but still up Dh13.25 compared with Thursday’s opening level.
United Arab Emirates gold prices have remained sensitive to shifts in geopolitical risk, with recent movements reflecting fluctuations in global safe-haven demand linked to tensions involving the United States and Iran.
Among other variants of the precious metal, 22K gold was trading at Dh467.75 per gram, 21K at Dh448.50, 18K at Dh384.25, and 14K at Dh299.75 per gram, respectively.
Spot gold rose 2.2 per cent to $4,188 per ounce on Friday morning.
Frank Walbaum said gold had stabilised near multi-month lows, supported by slightly weaker bond yields and a steady US dollar.
However, he noted that the metal could remain under pressure if inflation concerns intensify and both yields and the dollar move higher. “The broader macroeconomic environment could continue to pose challenges for the metal,” he said.
In the United States, the latest inflation data remains above the Federal Reserve’s target, reinforcing expectations that interest rates may need to stay elevated for longer.
Although markets are not expecting policy changes this month, an interest rate hike is increasingly anticipated later in the year, he added.
Looking ahead, Walbaum said gold will remain highly sensitive to geopolitical developments in the Middle East and inflation trends. He added that diplomatic progress could support prices through lower yields, while a more cautious outlook may strengthen expectations of tighter monetary policy and weigh on bullion.
However, he noted that continued central bank buying is likely to provide long-term support and help limit downside risks.
