Dubai gold prices jump more than Dh11 as 24K hits fresh May high

Dubai: Dubai gold prices rose by more than Dh11 on Wednesday morning, taking local rates to their highest level so far this month.

The 24-karat variety was priced at Dh560 a gram at 9.17 am, compared with Dh548.50 on Tuesday. The 22-karat variety rose to Dh518.75 from Dh508. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

The increase means jewellery buyers in Dubai are paying Dh11.50 more per gram for 24K gold and Dh10.75 more per gram for 22K gold compared with Tuesday’s rate.

Prices move above earlier May levels

Gold prices in Dubai have moved unevenly since the start of May. The 24K rate stood at Dh557.50 on May 1, eased to Dh556 on May 2 and 3, dropped to Dh546 on May 4 and recovered to Dh548.50 on May 5 before rising to Dh560 on Wednesday.

The 22K rate followed the same pattern. It started the month at Dh516.25, eased to Dh514.75 for two days, fell to Dh505.50 on May 4, recovered to Dh508 on Tuesday and reached Dh518.75 on Wednesday morning.

Wednesday’s increase puts both 24K and 22K gold at their highest levels so far this month.

Global gold gains

Gold extended gains globally after US President Donald Trump said progress had been made on a final agreement with Iran, while the dollar moved lower.

Bullion rose by much as 1.6% to near $4,630 an ounce, after gaining 0.8% on Tuesday. A gauge of the dollar declined 0.3%, making gold cheaper for buyers using other currencies.

Trump said in a social media post that “great progress” had been made with Iran and that he would pause a US-led effort to help stranded ships exit the Strait of Hormuz to see whether an agreement can be finalised.

US Defense Secretary Pete Hegseth said the truce that began just under a month ago was holding, while Secretary of State Marco Rubio said offensive operations were over and Washington was shifting to protecting shipping in the strait. Iranian Foreign Minister Abbas Araghchi said talks were “making progress.”

Hormuz uncertainty remains

Reports that a cargo vessel was hit by an unknown projectile a day after clashes involving ships in the Strait of Hormuz showed that tensions remain.

The path to a deal that fully reopens the strait remains unclear, keeping gold tied to inflation concerns and expectations around US interest rates.

Bond traders are raising bets that the Federal Reserve’s next policy move could be a rate increase instead of a cut. Higher rates usually weigh on gold because bullion does not pay interest.

Gold has fallen more than 12% since the war began in late February.

Expectations for a possible rate hike are building before the US employment report, which could show labour market conditions stabilising and put inflation risks back at the centre of investor focus.

- With inputs from Bloomberg.