Dubai gold prices rise again, with 24K back near this month’s high

Dubai: Dubai gold prices moved higher on Friday morning, putting jewellery buyers and investors back on watch after a volatile start to May that has already seen sizeable day-to-day swings across local rates. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

At 8.37 am on Friday, 24-karat gold stood at Dh568.50 per gram, compared with Dh565 on Thursday, while 22-karat gold rose to Dh526.50 from Dh523. The latest move takes 24-karat gold close to the month’s opening level of Dh557.50 on May 1, after prices dropped to Dh546 on May 4 and then climbed again through the week.

The rebound has been sharper for consumers tracking daily jewellery rates, with 24-karat gold up Dh22.50 per gram from its May 4 level, while 22-karat gold has risen Dh21 over the same period. That matters directly to UAE residents planning purchases, since even a small move per gram can change the final bill for heavier jewellery, coins or investment bars.

The latest rise in Dubai rates followed a recovery in global bullion, with spot gold trading near $4,720 an ounce after signs of renewed buying interest appeared in the wake of fresh central bank demand from China.

Gold had ended the previous session slightly lower, but the market found support after data showed the People’s Bank of China bought 8 tonnes of gold in April. The purchase marked its highest monthly addition since 2024 and extended a buying streak that traders are watching closely because central bank demand has been one of the strongest forces behind gold’s multi-year rally.

Fresh clashes in the Middle East have also kept bullion on investors’ radar, even though the metal has come under pressure since the conflict began. The US struck military targets in Iran after Iran fired on three navy destroyers sailing in the Strait of Hormuz, raising the risk around one of the world’s most important energy corridors.

The fighting has complicated efforts to reopen the Strait of Hormuz, a vital route for global energy flows, at a time when markets are already sensitive to any disruption in oil and gas shipments. Gold usually benefits from geopolitical stress, but the current conflict has created a more complicated backdrop because higher energy prices can feed inflation and reduce the chance of near-term interest rate cuts.

Bullion has fallen around 11% since the conflict erupted, with traders worried that a Hormuz-related energy shock could keep inflation elevated and interest rates higher for longer. Higher rates usually weigh on gold because the metal does not pay interest, while a stronger US dollar makes bullion more expensive for buyers using other currencies.

The next major cue for gold buyers will come from US non-farm payrolls data due later on Friday, which could influence expectations for the Federal Reserve’s rate path.

Some Fed officials have played down the prospect of an eventual return to monetary easing, with the war clouding the economic outlook and adding fresh uncertainty to inflation forecasts. That leaves gold caught between two competing forces, with geopolitical demand supporting prices while higher-for-longer rates limit the upside.

Dubai buyers may therefore see continued volatility in local rates through the coming sessions. The month so far has already shown how quickly prices can change, with 24-karat gold moving from Dh557.50 on May 1 to Dh546 on May 4, before rising to Dh568.50 by Friday morning.

- With inputs from Bloomberg.