UAE gold prices rise, yet buyers still pay Dh18.50 less than July peak

Dubai: Gold prices in the UAE moved slightly higher on Monday morning, although buyers continue to pay considerably less than they would have at the market’s July peak.

The 24-karat variety stood at Dh484.50 at 10.55 am, up by 25 fils from Dh484.25 over the weekend. The 22-karat variety rose by 50 fils to Dh448.75 from Dh448.25.

Monday’s movement leaves 24K gold Dh18.50 below its July 5 high of Dh503, while 22K remains Dh17.25 below its monthly peak of Dh466.

A buyer purchasing 10 grams of 24K gold would pay Dh185 less than at the July peak, while the equivalent difference for 22K would be Dh172.50.

Prices recover from mid-month low

Gold began July at Dh489.75 for 24K and Dh453.50 for 22K before climbing during the first week of the month.

The 24K rate reached Dh503 on July 4 and July 5, while 22K touched Dh466 during the same period. Prices then retreated, with 24K falling to Dh481.50 on July 16 and July 17 and 22K declining to Dh446.

Monday’s price means 24K has recovered Dh3 from its mid-month low, while 22K has gained Dh2.75.

Rates remain lower than at the beginning of July, with 24K down Dh5.25 from July 1 and 22K lower by Dh4.75.

Gold holds near $4,010 globally

International gold prices steadied at around $4,010 an ounce after losing more than 2% last week, with traders assessing the impact of renewed hostilities between the US and Iran.

Brent crude rose above $90 a barrel following attacks on an oil facility in Kuwait and vessels attempting to pass through the Strait of Hormuz.

The renewed conflict has pushed energy and commodity prices higher, raising concerns that persistent inflation could eventually influence the US Federal Reserve’s interest-rate decisions.

Higher borrowing costs tend to weigh on gold because the metal does not provide interest income.

Bullion has traded within a narrow range around $4,000 in recent weeks after losing 14% during the second quarter, its weakest quarterly performance since 2013.

- With inputs from Bloomberg.