Dubai gold prices hold at Dh547.5 as global rates dip amid Iran conflict fears
UAE, Indian gold rates rise as investors track ceasefire talks and inflation fears
Dubai: Dubai’s gold prices were largely unchanged on Monday as global markets weighed intensifying Middle East tensions, rising oil prices and a stronger US dollar, all of which are shaping investor sentiment toward safe-haven assets.
In Dubai, 24K gold held steady at Dh547.50 per gram, unchanged from Sunday’s level, while 22K gold remained flat at Dh507 per gram.
The stability comes even as international spot gold prices slipped 0.41 per cent to $4,504.51 an ounce after touching a two-week high in the previous session.
Market turbulence
Analysts say the market is caught between competing forces. On one hand, geopolitical uncertainty surrounding Iran, Israel and Lebanon is supporting safe-haven demand for bullion. On the other, higher oil prices and a stronger US dollar are limiting gold’s upside momentum.
According to Reuters, gold edged lower after oil prices climbed more than 2 per cent and investors awaited US President Donald Trump’s decision on a proposed extension of the Iran ceasefire deal.
Tim Waterer, Chief Market Analyst at KCM Trade, told Reuters the rise in oil prices and uncertainty over US-Iran negotiations were “keeping gold off balance” at the start of the week.
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For UAE shoppers, the lack of movement in local prices may offer a temporary window before volatility returns. Jewellers and bullion traders in Dubai have seen consumers delay purchases in recent weeks amid elevated prices, particularly for bridal jewellery and larger investment buys.
Ipek Ozkardeskaya, Senior Analyst at Swissquote, said global investors have largely focused on booming technology and AI stocks despite mounting geopolitical risks and sticky inflation pressures.
“Oil prices remain high enough to threaten economic activity,” she said, adding that markets are still underestimating the risks linked to the Middle East conflict and tightening global energy supplies.
She warned that if tensions escalate further and oil inventories continue tightening, crude prices could spike sharply, adding to inflation concerns worldwide. Higher inflation and elevated interest rates generally reduce gold’s attractiveness because bullion does not offer interest income.
Still, longer-term sentiment toward gold remains constructive. Waterer said gold could potentially climb as high as $5,500 an ounce by the end of 2026 if conditions such as a weaker US dollar, lower oil prices and continued central bank buying materialise.
Rates in India
Indian gold prices also remained unchanged on Monday, mirroring the stability seen in Dubai.
In India, 24K gold held at ₹15,704 per gram, or ₹157,040 per 10 grams, while 22K gold stayed at ₹14,395 per gram, or ₹143,950 per 10 grams.
Indian buyers continue to navigate record-high prices ahead of the upcoming festive and wedding demand cycles. Analysts say consumers in India, one of the world’s largest gold markets, are becoming increasingly cautious, with many opting for lighter jewellery purchases or waiting for corrections before buying.
