Dubai gold prices climb again after a volatile July. What buyers will pay today
Jewellery buyers face higher rates after Dubai gold ended July with steep price swings
Dubai: Gold prices moved higher on Monday morning, raising rates for jewellery buyers after remaining unchanged throughout the weekend.
Get updated faster and for FREE: Download the Gulf News app now - simply click here.
Prices gain after a volatile July
Dubai gold rates began August at Dh487.25 for 24K and Dh451.25 for 22K, with both prices holding at the same levels on Saturday and Sunday before Monday’s increase.
Compared with July 31, the 24K rate has risen by Dh3.25 per gram, while the 22K variety has gained Dh3 per gram during the first three days of August.
July recorded wide movements, with 24K gold standing at Dh503 per gram on July 5 before falling to Dh481.50 on July 16 and July 17. The rate recovered to Dh500.75 on July 22, but eased again during the final days of the month to close July at Dh485.25.
The 22K variety followed a similar path, moving from Dh466 per gram on July 5 to Dh446 on July 16 and July 17. It later climbed to Dh463.75 on July 22 before finishing the month at Dh449.25.
Iran negotiations lift bullion
Gold advanced in international markets after US President Donald Trump said fresh negotiations with Iran would begin later on Monday, raising expectations of progress in the conflict and an easing of energy-driven inflation.
Bullion was trading at around $4,070 an ounce after gaining 1% during July, marking its first monthly increase since February.
Trump said he had cancelled a large attack on Iran after Middle East allies, including Saudi Arabia, urged him to pursue an agreement instead. Benchmark Brent crude fell by more than 7% during Asian trading on Monday morning.
Federal Reserve policy in focus
Traders are also monitoring the Federal Reserve after The New York Times reported that Chairman Kevin Warsh was considering reducing the frequency of policy meetings.
Such a move would represent a major change for the US central bank, which currently holds eight meetings each year and voted 9-3 last Wednesday to leave interest rates unchanged.
Three officials who opposed the decision warned that delaying action could eventually require more aggressive policy measures, while the central bank continues to face pressure to contain inflation.
Gold remains more than 20% lower since the US-Iran war began more than five months ago. Higher energy costs have added to inflation concerns and increased the likelihood of interest rates staying elevated, which weighs on precious metals because they do not offer interest income.
- With inputs from Bloomberg.
