Dubai gold prices rise today, 24K still Dh39 below June peak
Shoppers see 24K at Dh503.75 per gram after weekend dip, still below early June levels
The 24-carat variety stood at Dh503.75 per gram at 9.14 am, up from Dh500.75 on Sunday, while 22-carat gold was priced at Dh466.50, compared with Dh463.75 a day earlier.
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Prices remain below June highs
Monday’s increase follows a volatile month for UAE gold buyers, with 24-carat gold touching Dh542.50 on June 2 before losing ground through the middle of the month. The latest rate is nearly Dh39 below that peak, offering some relief to shoppers who delayed purchases during the early-June surge.
The 22-carat variety has followed the same pattern, easing from Dh502.25 on June 2 to Dh466.50 on Monday morning. Prices briefly moved back above Dh520 for 24-carat gold on June 15 and June 16, before falling again below Dh510 later in the week.
Dubai rates were at Dh509.25 for 24-carat and Dh471.50 for 22-carat on June 18, before easing to Dh500 on June 19 and holding close to that level through the weekend. Monday’s move marks a slight recovery from those lower levels, but buyers are still seeing prices far below the month’s opening highs.
Global gold steadies after talks progress
Gold rose internationally after negotiators reported progress in talks between the US and Iran aimed at finding a permanent resolution to the war that has disrupted global markets.
Bullion climbed as much as 1.6% to move above $4,220 an ounce, erasing last week’s loss, after Qatar and Pakistan said in a joint statement that “encouraging progress” had been made in the first round of high-level peace negotiations in Switzerland.
Talks are expected to continue through the week, easing some concern after US President Donald Trump issued a fresh threat to strike Iran.
A communication line between Tehran and Washington has also been formed to help secure safe passage for commercial vessels through the Strait of Hormuz. Oil prices fell on Monday, while crude continued to move through the strait over the weekend.
The US and Iran signed a memorandum of understanding last week, starting a de-escalation process and opening a 60-day window for further negotiations.
Why gold has not fully recovered
Gold has fallen for three consecutive weeks and is down around a fifth since the war began at the end of February. The near-closure of Hormuz disrupted oil and natural gas flows and pushed up energy prices, raising the risk that central banks may keep borrowing costs higher to fight inflation.
Higher interest rates are usually negative for gold because the metal does not pay interest, making it less attractive when yields on other assets remain elevated.
New Federal Reserve Chairman Kevin Warsh took a hawkish tone on inflation during his first policy meeting last week, without giving a clear signal on the future path for interest rates. Traders are now watching the US personal consumption expenditures price index due Thursday, which is expected to show faster inflation.
- With inputs from Bloomberg.
