Dubai gold prices edge higher after Dh11 fall from May high
Gold inches up in Dubai after prices fell from May highs earlier this week
The 24-karat variety stood at Dh546.25 per gram at 9:12am on Tuesday, compared with Dh546 on Monday. The 22-karat variety was priced at Dh505.75, up from Dh505.50.
The increase was modest, but it came after a clear drop from the month’s opening levels. The 24-karat rate was at Dh557.50 on May 1, before holding at Dh556 on May 2 and May 3, then falling to Dh546 on May 4. Tuesday’s rate means 24-karat gold is still Dh11.25 per gram lower than the start-of-month level.
The 22-karat variety followed a similar path, easing from Dh516.25 on May 1 to Dh514.75 on May 2 and May 3, before dropping to Dh505.50 on Monday. At Tuesday’s rate of Dh505.75, 22-karat gold remains Dh10.50 per gram lower than May 1.
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Global bullion rebounds
The local move tracked a rebound in global bullion after buyers stepped in following Monday’s decline.
Gold edged higher after prices fell 2% on Monday, with traders returning to the market while fresh Middle East tensions kept inflation and interest-rate risks in focus. Bullion rose as much as 0.6% toward $4,550 an ounce, while spot gold was 0.4% higher at $4,541.79 at 11:14am in Singapore.
The latest move followed geopolitical escalations in the Middle East.
Rate risks stay in focus
The violence shook a ceasefire that had largely held since April 8 and added to inflation concerns. Oil prices climbed on the reports, while 30-year US Treasury yields rose to the highest since July, with traders increasing bets that the Federal Reserve may need to raise interest rates to contain inflation.
Higher interest rates are generally negative for gold because the metal does not offer a yield. Still, bullion can draw support during periods of geopolitical tension, particularly when traders seek protection from wider market risks.
Traders are now watching this week’s US Treasury borrowing plans and a busy calendar of economic releases for further clues on the path of rates.
Silver rose 0.5% to $73.10, while platinum and palladium also advanced.
- With inputs from Bloomberg.
