Dubai gold prices edge up as US-Iran ceasefire cools volatility

Dubai: Gold prices in Dubai inched higher on Friday morning, even as a fragile ceasefire between the US, Iran and Israel begins to take some of the heat out of global markets — a sign that bullion is not quite ready to give up its safe-haven appeal just yet.

In Dubai, 24K gold rose modestly to Dh578.75 per gram, up Dh1 from Thursday’s Dh577.75, while 22K climbed to Dh536.00, also gaining Dh1.00. The muted increase marks a shift from Thursday’s sharper rebound, when prices surged by over Dh4 amid resurfacing geopolitical jitters.

(Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

Compared to yesterday’s rally — driven by renewed fears around the Strait of Hormuz and uncertainty over diplomatic progress — today’s price action suggests a market that is cautiously recalibrating. With ceasefire signals emerging and talks potentially back on the table, traders appear to be trimming risk premiums, though not abandoning them entirely.

In Saudi Arabia, gold prices held steady at lower levels compared to earlier volatility. Twenty-four karat gold was flat at SR595.00 per gram, unchanged from the previous close but still below Thursday morning’s SR598. Meanwhile, 22K stood at SR543.00, also unchanged from the close but down from SR550 earlier in the previous session.

India, however, painted a different picture, with gold prices declining more noticeably. Twenty-four karat gold fell to ₹154,200 per 10 grams from ₹155,560, while 22K dropped to ₹141,350 from ₹142,600.

The sharper pullback in India suggests demand-side pressures and currency dynamics are playing a bigger role, even as global cues remain supportive. Reports of disruptions to bullion imports may also be weighing on local pricing trends.

Globally, gold prices remained largely steady, hovering near elevated levels. Spot gold stood at $4,786.82, up marginally by 0.03 per cent, and on track for a fourth consecutive weekly gain.

According to Antonio Di Giacomo, Senior Market Analyst at XS.com, gold’s resilience is being underpinned by a weaker US dollar and rising expectations of renewed US-Iran negotiations.

“The precious metal has remained near $4,800 per ounce, consolidating at elevated levels and reflecting a market environment that balances caution and opportunity,” he said.

A softer dollar has made gold more attractive to international buyers, while easing oil prices — now below $100 per barrel — have tempered inflation fears. This, in turn, has reduced pressure on central banks to maintain aggressive rate hikes, supporting bullion.

At the same time, markets are closely tracking ceasefire developments and diplomatic signals. Progress on negotiations could further stabilise oil and inflation expectations — a dynamic that may limit gold’s upside in the near term.

Still, with geopolitical risks lingering and investors continuing to hedge against uncertainty, gold appears to have found a firm footing — even if the urgency to buy has eased for now.