Dubai gold prices are climbing again. Here’s how far they remain from July’s peak
Gold opens the week higher in Dubai after steep July swings and a renewed global rally
The 24-karat variety stood at Dh493.50 per gram at 8.41 am, up from Dh488.50 on Sunday, while 22-karat gold rose to Dh457 from Dh452.25.
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The increase placed gold prices back at the levels recorded earlier in July, although rates remained below the month’s peak and the Dh500 mark crossed last week.
Prices recover from July lows
Gold prices have moved through several swings during July, with 24-karat gold beginning the month at Dh489.75 before climbing above Dh500 during the first week.
The rate reached Dh503 on July 4 and July 5, its highest level so far this month, while 22-karat gold climbed to Dh466 during the same period.
Prices subsequently declined, with 24-karat gold falling to Dh481.50 on July 16 and July 17, while the 22-karat variety dropped to Dh446.
The market then recovered, with 24-karat gold rising from Dh483 on July 20 to Dh500.75 on July 22. Prices fell back to Dh487.50 the following day before reaching Dh493.50 on Monday.
Monday’s rate leaves 24-karat gold Dh9.50 below the July peak and Dh12 above the month’s lowest level. The 22-karat rate is Dh9 below its monthly high and Dh11 above its July low.
International gold moves above $4,100
International bullion rose by as much as 1.6% to move above $4,100 an ounce after gaining nearly 1% during the previous week.
The increase followed a pause in fighting between the US and Iran over the weekend, which eased concerns surrounding oil supplies and inflation.
The US halted an almost two-week series of strikes against Iran without an explanation or announcement, while Iran indicated that it was refraining from retaliatory attacks and held talks with Oman over shipping through the Strait of Hormuz.
Oil prices fell at the start of the week, with Brent dropping more than 7% to below $90 a barrel during the opening minutes before recovering part of those losses.
The decline came despite missile attacks claimed by Tehran-backed Houthis in Yemen on facilities linked to Saudi Aramco in the Red Sea port towns of Jizan and Yanbu.
Federal Reserve decision in focus
Gold has remained close to $4,000 an ounce since late June, with buying during price declines helping the metal remain above the psychological threshold viewed by some traders as an important support level.
Bullion remains more than 20% below its level before the US and Israel launched strikes on Iran in late February, ending a multiyear rally that had taken gold to a record near $5,600 an ounce a month earlier.
Renewed fighting in the Middle East had raised inflation concerns in recent weeks and increased the possibility of higher US interest rates, creating pressure for non-yielding gold.
Attention will now turn to the Federal Reserve’s interest-rate decision this week, with higher energy costs conflicting with a lower-than-expected reading on US consumer prices for June.
- With inputs from Bloomberg.
