Dubai gold slips after two-day surge, traders watch Iran talks

Dubai: Gold prices in Dubai eased slightly on Thursday morning, giving up a small portion of the gains seen earlier this week as global markets weighed fragile geopolitical signals against shifting rate expectations.

The 24-karat rate stood at Dh569, down from Dh569.25, while 22-karat slipped to Dh526.75 from Dh527. The move reflects a pause after a short rally, with price direction still closely tied to developments around the ongoing conflict and policy signals from major central banks. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

Monthly trend shows sharp swings

April began on a strong footing with 24K gold at Dh573 on April 1, before a steady decline pulled prices down to Dh561 by April 6. That early drop was followed by a rebound, with rates climbing back to Dh569 by April 8. Thursday’s marginal dip suggests the market is struggling to find a clear direction after this back-and-forth movement.

The pattern has been similar for 22K gold, which started the month at Dh530.75, fell to Dh519.50 midweek, and then recovered to Dh527 before easing slightly again.

Global markets keep gold supported

Internationally, bullion hovered near $4,715 an ounce after a 1.5% gain over the previous two sessions, supported by a weaker dollar and a rebound in oil prices. Diplomatic signals from Washington pointing to direct talks with Iran offered some relief, though continued tensions in the region have kept markets cautious.

Gold has been moving alongside broader risk assets in recent weeks, with its safe-haven appeal diluted at times by investors raising liquidity to cover losses elsewhere.

Rate outlook complicates direction

The conflict has pushed energy prices higher and raised concerns over inflation, increasing the likelihood that central banks may delay rate cuts or consider further tightening. That tends to weigh on gold, which does not offer yield.

At the same time, risks to growth and employment are building, which could eventually support lower rates and lift bullion demand again. Minutes from the latest Federal Reserve meeting showed policymakers divided between these competing scenarios.

Short-term price movements remain sensitive to headlines around the conflict and policy signals from the US Federal Reserve. The recent pullback from early April highs offers a slightly better entry point, though volatility is likely to persist in the coming days.

- With inputs from Bloomberg.