Dubai gold prices rise, but buyers still get Dh18 relief from April peak

Dubai: Gold prices in Dubai edged higher on Monday morning, although rates remain well below the highs seen earlier this month, giving jewellery buyers a slightly better entry point than the peak levels recorded in mid-April.

The 24-karat variety rose to Dh569.50 per gram at 9.35 am, compared with Dh567.50 on Sunday, while 22-karat gold moved up to Dh527.25 from Dh525.50, according to Dubai retail gold rate data. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

The latest move means 24K gold is still Dh18.50 per gram lower than its April 17 level of Dh588, while 22K remains Dh17.25 below its April high of Dh544.50, leaving buyers with some relief despite Monday’s increase.

Dubai gold prices have moved through a wide range this month, with 24K starting April at Dh573 per gram before slipping to Dh563 on April 2 and staying around Dh563.50 for the next three days.

The rate then recovered through the second week, reaching Dh577.25 on April 9 and Dh575 on April 10, before climbing again to Dh582 on April 14 and Dh578 on April 15.

The strongest move came in the middle of the month, when 24K rose to Dh577.75 on April 16 and then hit Dh588 on April 17, its highest level in the available April data. Prices stayed elevated at Dh582.25 on April 18 and 19 before easing to Dh580.50 on April 20, then fell back to Dh565 on April 21.

The final week of April has been more stable, with 24K moving between Dh565.75 and Dh569.50 from April 23 to April 27. The 22K rate followed a similar path, moving from Dh530.75 on April 1 to Dh521.25 on April 2, rising to Dh544.50 on April 17, then retreating to Dh523 on April 21 before recovering to Dh527.25 on Monday.

Global bullion remained sensitive to geopolitical headlines, with gold wavering after efforts to resume peace talks between the US and Iran stalled, while energy flows through the Strait of Hormuz remained strained.

Gold rose as much as 0.4% to $4,730 an ounce after an earlier loss, following reports that Iran had given the US a new proposal to reopen the strait while postponing talks on its nuclear programme.

Oil also rose on Monday before giving up some of its gains, with traders watching whether disruptions to energy flows will keep inflation risks elevated and make central banks more cautious about interest rates.

Michael Brown, Senior Research Strategist at Pepperstone, said markets were still leaning towards de-escalation despite the weekend’s failed attempt to revive talks.

“I wouldn’t be framing the weekend’s developments as any sort of escalation, or as anything that alters the broader direction of travel, which remains towards a deal being done,” Brown said.

Higher interest rates usually work against gold because bullion does not offer yield, but geopolitical uncertainty and inflation fears continue to support demand for the metal.

Brown said investors are also looking at a busy week for markets, with major central bank decisions, US and eurozone GDP data, inflation prints and a heavy earnings calendar likely to influence risk appetite.

“Although geopolitical events will remain in focus this week, a busy economic calendar lies ahead too,” he said.

A stronger global gold price, heightened oil-driven inflation concerns, or renewed geopolitical stress could push local rates higher again, while any progress in talks or a stronger dollar could ease some pressure on bullion.

- With inputs from Bloomberg.