Dubai gold prices climb on Eid Al Fitr morning as global rates recover

Dubai: Gold prices in Dubai edged higher on Friday morning, reversing the sharp declines seen earlier this week, even as markets remain surprisingly muted to escalating geopolitical tensions from the ongoing US-Israel war on Iran.

(Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

The price of 24-karat gold rose to Dh565.25, up from Dh561.50 yesterday, while 22-karat gold increased to Dh523.50 from Dh520.00. The uptick comes as international gold prices jumped 1.88 per cent to $4,662.97, suggesting renewed buying interest after a brief correction phase.

This rebound follows a steep drop over the past few days, when prices fell more than Dh30 in a single session and more than Dh80 from early March peaks.

The earlier decline had opened a window for Eid shoppers, with rates easing from highs of over Dh640 earlier this month to the mid-Dh550 range. Today’s increase indicates that the correction may be short-lived, particularly as global cues begin to shift.

While geopolitical tensions would typically drive safe-haven demand, the current price movement reflects a more complex market dynamic.

The modest rise in Dubai suggests that buyers are cautiously re-entering the market, likely driven by lower price levels rather than outright fear-driven demand.

Saudi Arabia and India

Regional markets mirrored Dubai’s upward trend. In Saudi Arabia, 24-karat gold climbed to 574.00 from 566.00, while 22-karat rose to 527.00 from 520.00, reflecting stronger regional sentiment.

India also saw prices increase, with 24-karat gold at ₹150,930 per 10 grams compared to ₹150,270 yesterday. The 22-karat variant rose to ₹138,350 from ₹137,750. The steady rise in India underscores continued retail demand, especially ahead of festive buying cycles.

International trends

Globally, gold prices are seeing a technical rebound after a six-day losing streak, but broader market signals remain mixed.

According to Carsten Menke, Head Next Generation Research at Julius Baer, precious metals markets are showing an unusual level of calm despite the geopolitical backdrop. Gold has recently slipped below key psychological levels, and any potential support from the Middle East conflict is being offset by a stronger US dollar, rising US bond yields, and expectations of tighter monetary policy.

The US Federal Reserve’s decision to hold interest rates steady has further dampened gold’s appeal, reinforcing the “do not fight the Fed” sentiment among investors. Notably, there is little evidence of strong safe-haven inflows or bargain-hunting activity, with physically backed gold products continuing to see outflows.

Julius Baer said it maintains a constructive outlook on gold but notes that a more severe escalation in the conflict—and a broader risk-off shift in financial markets—would likely be needed for gold to fully regain its safe-haven appeal. “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.