Dubai gold nears Dh500 again after gaining Dh14.25 in five days

Dubai: Gold shoppers in Dubai are again seeing prices close to Dh500 per gram after a five-day rebound pushed the 24-karat rate to Dh495.75 on Wednesday morning.

The price rose by Dh3.75 from Dh492 on Tuesday, leaving 24K gold only Dh4.25 below the closely watched Dh500 level.

Dubai’s 22K rate climbed by Dh3.50 to Dh459 per gram, compared with Dh455.50 a day earlier.

Gold recovers from July low

The latest increase extends a recovery that began after 24K gold dropped to Dh481.50 on July 16 and July 17, its lowest level so far this month.

Prices have since gained Dh14.25 per gram, with much of that increase recorded over the past three trading days. The 24K rate rose from Dh483 on Monday to Dh492 on Tuesday before reaching Dh495.75 on Wednesday.

The rebound has brought prices closer to July’s high of Dh503, recorded on July 4 and July 5. The current rate remains Dh7.25 below that peak.

Dubai’s 22K price has followed a similar pattern, recovering Dh13 from its monthly low of Dh446 and moving to within Dh7 of July’s peak of Dh466.

Prices are also higher than at the beginning of the month. The 24K rate has gained Dh6 from Dh489.75 on July 1, while 22K gold is Dh5.50 higher than its opening July level of Dh453.50.

Global gold rises above $4,100

The move in Dubai followed further gains in international bullion prices, with gold rising as much as 1% to trade above $4,100 an ounce.

The increase extended a gain of nearly 2% during the previous session, while silver advanced towards $60 an ounce.

Buyers returned after the recent decline even though elevated US Treasury yields continued to limit demand for the non-yielding metal.

Fresh investment also moved into gold-backed exchange-traded funds. Total holdings rose by about 7.4 tonnes on Tuesday, according to a Bloomberg tally, marking the largest daily inflow in more than a month.

Higher ETF demand indicates that some investors have begun rebuilding exposure after gold fell heavily from its January record.

Middle East tensions remain in focus

Gold continued to rise while hostilities between the US and Iran showed little sign of resolution.

US President Donald Trump played down the likelihood of immediate negotiations with Iran after both sides exchanged strikes near the Strait of Hormuz. Houthi militants in Yemen also threatened shipping in the Red Sea.

The comments followed a 10th day of US and Iranian attacks while mediators continued efforts to restart negotiations.

Oil prices moved higher again on Wednesday and have recorded strong gains during July since hostilities resumed. Rising energy costs can add to inflation concerns, while higher borrowing costs tend to weigh on gold because the metal does not pay interest.

The US-Iran conflict brought an end to gold’s multiyear advance earlier this year, with bullion falling by about a quarter from its January peak of nearly $5,600 an ounce.

Traders are now weighing higher oil prices against softer US economic data while looking for further signals on the Federal Reserve’s interest-rate path.

The forecast included in the market update puts gold at $4,450 an ounce and silver at $65.40 an ounce by the fourth quarter.

- With inputs from Bloomberg.