Dubai gold prices ease as Trump says war ‘close to over’

Dubai: Dubai gold prices edged lower on Wednesday morning as signs of easing geopolitical tension in the Iran conflict cooled safe-haven demand, with bullion retreating after Tuesday’s rebound.

(Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

In Dubai, 24K gold slipped to Dh581.50 per gram from Dh582.00 yesterday, while 22K fell to Dh538.50 from Dh539.00 — a modest decline that suggests traders are pricing in optimism after US President Donald Trump said talks to end the Iran war could resume within days.

The dip marks a reversal from Tuesday’s upward move, when Dubai gold climbed amid increased uncertainty about the status of the war and growing tensions over the Strait of Hormuz.

Yesterday’s gains had reflected investor caution despite diplomatic signals, but today’s softer prices indicate that markets are responding more strongly to expectations that US-Iran negotiations may prevent further escalation in the region.

According to the Wall Street Journal, ships out of Iranian ports have been turning back when instructed by U.S. forces maintaining a blockade of the Strait of Hormuz, citing officials. No interdictions have been reported, and enforcement is unlikely to occur in the Arabian Gulf, the report stated.

Meanwhile, more than 20 commercial ships have recently passed through the strait, an improvement in the flow of vessels through a critical chokepoint.

In Saudi Arabia, gold prices were unchanged, signalling a steadier retail market. The 24K rate held at SAR600 per gram, while 22K remained flat at SAR548.

The lack of movement suggests buyers in the Kingdom are waiting for clearer geopolitical direction before reacting to international bullion shifts.

India, however, saw a notable jump in domestic gold prices, underlining stronger local demand ahead of the Hindu festival of Akshaya Tritiya, falling on April 19, and pressures from rupee-linked pricing.

The sharp rise in India contrasts with the softer Gulf trend and reflects a mix of local-currency effects, import-cost dynamics, and persistent retail buying despite international price moderation.

Globally, spot gold inched lower after touching a one-month high earlier in the session, as the US dollar regained strength and hopes of renewed US-Iran peace talks improved market sentiment.

Spot gold was down 0.3 per cent at $4,828.07 an ounce after earlier hitting its highest level since March 18, while US gold futures for June delivery held steady at $4,851.30.

Reuters reported that bullion remains up 1.6 per cent this week, but analysts say Trump’s remarks on possible talks in Pakistan have shifted markets into a more “risk-on” mode, pulling some money out of defensive assets such as gold.

Oil prices also fell, and equities rallied on expectations that Iran may resume negotiations, easing fears over disruption in the Strait of Hormuz.