Dubai gold prices for 24K climbed Dh5 on Tuesday, though they are still Dh15 lower than the July high.
Dubai: Gold prices edged higher on Tuesday morning, with 24-karat gold trading at Dh488 per gram at 9.44am, up Dh5 from Dh483 on Monday. The price of 22-karat gold also increased, rising by Dh4.75 to Dh452 per gram from Dh447.25 the previous day.
Tuesday’s rise pushed gold prices further above last week’s monthly low, although both 24-karat and 22-karat gold remain significantly below their July highs.
Prices remain below July peak
The 24-karat gold rate opened the month at Dh489.75 per gram before rising to Dh503 on July 4 and July 5, marking its highest level so far in July.
Prices later declined, with a brief recovery to Dh497.25 on July 9, before falling to Dh481.50 on July 16 and July 17. Tuesday’s price is Dh6.50 higher than that monthly low but remains Dh15 below the July peak.
The 22-karat gold rate followed a similar trend, increasing from Dh453.50 at the start of July to reach a monthly high of Dh466 on July 4 and July 5.
Prices later declined to Dh446 on July 16 and July 17 before recovering to Dh452 on Tuesday. The current rate is Dh6 higher than the month’s low and Dh14 below the July peak.
For buyers purchasing 10 grams of 24-karat gold, Tuesday’s price increase means paying Dh50 more compared with Monday. However, the same quantity remains Dh150 cheaper than it was at the July high.
Global gold climbs above $4,000
Gold prices also advanced in international markets as investors returned to bullion after its recent decline and monitored ongoing developments in the Middle East.
Bullion prices rose as much as 1.5% to trade near $4,068 an ounce, reaching their strongest level in more than two weeks. Oil prices slipped after two consecutive sessions of gains, despite the United States launching another round of strikes on Iranian targets.
Tensions escalated further after Yemen’s Iran-backed Houthi group announced plans to impose a maritime blockade on Saudi Arabia. A Saudi-led military coalition said it had taken steps to safeguard vessels operating in the Red Sea.
Interest rates remain a key risk
The conflict has contributed to higher prices for commodities used in manufacturing and food production, prompting traders to evaluate the impact of rising energy costs on inflation and future interest rate decisions.
Rising inflation pressures could keep borrowing costs elevated or raise the likelihood of additional interest rate measures by the US Federal Reserve. Higher interest rates typically put pressure on gold prices, as the precious metal does not generate interest income.
However, weaker US economic data and ongoing geopolitical uncertainty have continued to support demand for gold, with investors returning to the metal after prices approached the closely monitored $4,000-per-ounce mark
