Dubai gold stays above Dh520 after wild June swing from Dh542 to Dh492

Dubai: Dubai gold prices dipped slightly on Tuesday morning, but remained above the Dh520 mark after a volatile month that saw local rates swing from early-June highs to a sharp mid-month drop before recovering again. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

At 9.50 am on Tuesday, 24-karat gold was priced at Dh520.75 per gram, down from Dh521.25 on Monday. The 22-karat variety stood at Dh482.25, compared with Dh482.50 a day earlier.

Gold started June at Dh539.75 per gram for 24-karat and climbed to Dh542.50 on June 2, marking the highest point so far this month. Prices stayed elevated on June 3 and June 4, with 24-karat at Dh536 and Dh538.50, while 22-karat remained close to the Dh500 level.

The pullback began after that, with 24-karat dropping to Dh522.50 on June 5 and then holding around Dh521 to Dh522 through June 8. The sharpest fall came on June 10, when 24-karat gold slipped to Dh492.50 and 22-karat fell to Dh456, giving buyers the lowest rates seen so far this month.

Prices then recovered steadily. The 24-karat variety moved back above Dh500 on June 11, reached Dh508.50 between June 12 and June 14, and then climbed to Dh521.25 on June 15. Tuesday’s slight dip to Dh520.75 still leaves gold well above last week’s low, but below the June 2 peak of Dh542.50.

Linh Tran, Market Analyst at XS.com, said gold’s recovery has gained momentum after a steep correction, with international prices moving back above the $4,300 an ounce level.

“Gold prices continued to recover, marking a third consecutive session of gains and pushing XAU/USD back above the 4,300 USD/oz level after a sharp correction,” Tran said.

She said the move suggests dip-buying demand has become more visible as markets reassess the outlook for interest rates, inflation and the US dollar.

One of the main factors helping gold has been the fall in oil prices. Lower oil prices can ease inflation pressure, which in turn reduces the need for the Federal Reserve to keep monetary policy tight for longer.

Gold has also found support from a softer US dollar, which Tran said weakened slightly to around 99.3. A weaker dollar usually helps gold because it makes the metal cheaper for buyers using other currencies.

“After being supported by relatively resilient U.S. economic data and expectations that the Fed would keep rates elevated, the dollar is now showing signs of losing momentum,” Tran said.

Global bullion prices were near $4,315 an ounce after climbing in the previous session. Gold held gains after US President Donald Trump said the Strait of Hormuz could reopen on Friday, a development that could ease the energy and inflation shock that has unsettled global markets.

Oil prices also remained under pressure, with West Texas Intermediate trading near $81 a barrel after falling almost 5% on Monday, while Brent ended near $83.

During the recent conflict, gold moved largely in the opposite direction to crude. Higher energy prices fed inflation concerns and strengthened expectations that central banks would keep rates higher for longer, reducing the appeal of gold.

Tran said gold’s broader support remains intact, helped by central bank demand, investor hedging against inflation and policy uncertainty, and signs of improvement in gold exchange-traded fund flows.

She said ETF flows are important because they often reflect medium-term expectations for gold, instead of short-term reactions to geopolitical events.

The next key trigger will be the Federal Reserve meeting, with investors watching whether policymakers signal a softer stance on rates or maintain a more cautious tone.

“If the Fed delivers a more dovish message, Treasury yields cool, and the dollar continues to weaken, gold could extend its recovery toward 4,500 USD/oz in the short term,” Tran said.

She added that the recovery could lose momentum if the Fed maintains a hawkish stance or if the dollar rebounds.

- With inputs from Bloomberg.