UAE gold prices rise, yet buyers still pay Dh18.50 less than July peak

24K rose to Dh484.50 on Monday but remains well below its July 5 high

Last updated:
Nivetha Dayanand, Assistant Business Editor
Diamond-encrusted gold rings are displayed in a storefront of a shop.
Diamond-encrusted gold rings are displayed in a storefront of a shop.
AFP

Dubai: Gold prices in the UAE moved slightly higher on Monday morning, although buyers continue to pay considerably less than they would have at the market’s July peak.

The 24-karat variety stood at Dh484.50 at 10.55 am, up by 25 fils from Dh484.25 over the weekend. The 22-karat variety rose by 50 fils to Dh448.75 from Dh448.25.

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Monday’s movement leaves 24K gold Dh18.50 below its July 5 high of Dh503, while 22K remains Dh17.25 below its monthly peak of Dh466.

A buyer purchasing 10 grams of 24K gold would pay Dh185 less than at the July peak, while the equivalent difference for 22K would be Dh172.50.

Prices recover from mid-month low

Gold began July at Dh489.75 for 24K and Dh453.50 for 22K before climbing during the first week of the month.

The 24K rate reached Dh503 on July 4 and July 5, while 22K touched Dh466 during the same period. Prices then retreated, with 24K falling to Dh481.50 on July 16 and July 17 and 22K declining to Dh446.

Monday’s price means 24K has recovered Dh3 from its mid-month low, while 22K has gained Dh2.75.

Rates remain lower than at the beginning of July, with 24K down Dh5.25 from July 1 and 22K lower by Dh4.75.

Gold holds near $4,010 globally

International gold prices steadied at around $4,010 an ounce after losing more than 2% last week, with traders assessing the impact of renewed hostilities between the US and Iran.

Brent crude rose above $90 a barrel following attacks on an oil facility in Kuwait and vessels attempting to pass through the Strait of Hormuz.

The renewed conflict has pushed energy and commodity prices higher, raising concerns that persistent inflation could eventually influence the US Federal Reserve’s interest-rate decisions.

Higher borrowing costs tend to weigh on gold because the metal does not provide interest income.

Bullion has traded within a narrow range around $4,000 in recent weeks after losing 14% during the second quarter, its weakest quarterly performance since 2013.

- With inputs from Bloomberg.

Nivetha Dayanand
Nivetha DayanandAssistant Business Editor
Nivetha Dayanand is Assistant Business Editor at Gulf News, covering aviation, financial markets and commodities. A business and financial journalist with a strong interest in multimedia storytelling, she regularly takes complex financial and economic subjects beyond the written word, producing explainer videos that make them easier for a wider audience to understand. Nivetha has interviewed senior policymakers, business leaders and global financial figures both on and off camera. Her past guests include UAE Minister of Economy and Tourism Abdulla bin Touq Al Marri, Khaled bin Alwaleed Al Saud, a member of the House of Saud and the founder and CEO of KBW Ventures, Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund and Indian ministers Hardeep Singh Puri and N. Chandrababu Naidu. She has also hosted and moderated panels, conferences and awards shows, bringing her newsroom experience to live conversations on business, finance and the economy. An Erasmus Mundus journalism alum, Nivetha is drawn to stories that affect people directly and to reporting that gives a platform to voices that might otherwise go unheard. She was among the first journalists to speak to Petrofac employees in the UAE about unpaid salaries, broke the news of the planned demolition of Dubai’s well-known “Toyota Building”, and helped set the record straight on widely circulated claims that a giant replica of the Moon was coming to Dubai. More recently, her exclusive interview with EDGE Group CEO Hamad Al Marar revealed how the UAE-based defence group deployed its systems along the country’s shore border and established a geofence around the UAE within 48 hours of the February 28 escalation. Prior to joining Gulf News, Nivetha worked at ITP Media, where she helped launch Finance Middle East, a new publication covering the region’s financial sector. Her role spanned reporting and editing, video production, interviews and events. Across print, digital, and video, she focuses on finding the people behind business stories and explaining why those stories matter to the audience reading or watching them.
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