Dubai gold prices rise again after a Dh21 jump this week
Dubai: Dubai gold prices moved higher on Thursday morning, extending a strong rebound that has taken 24K gold back near Dh570 a gram after a sharp rise earlier in the week. (Check latest UAE gold prices , alongside prices in , , , , , and .)
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The 24K variant stood at Dh569.50 a gram at 10.48 am on Thursday, up from Dh566.50 on Wednesday. The 22K variant, which is the category most commonly used in jewellery purchases, rose to Dh527.25 a gram from Dh524.50.
The latest increase means 24K gold has gained Dh21 a gram since Monday, when it was priced at Dh548.50. The 22K rate has risen Dh19.25 over the same period, moving from Dh508 to Dh527.25.
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For shoppers, the move narrows the buying window that opened earlier in the week, when Dubai gold prices briefly dropped closer to Dh546 for 24K and Dh505.50 for 22K. That level did not last long, with prices rising again on Tuesday, Wednesday and Thursday.
Prices reverse early-May dip
Dubai gold prices started May at elevated levels, with 24K at Dh557.50 and 22K at Dh516.25 on May 1. Prices eased slightly over the next few days, with 24K holding at Dh556 on May 2 and May 3, while 22K stayed at Dh514.75.
The real drop came on May 4, when 24K fell to Dh546 and 22K declined to Dh505.50. Prices began recovering the next day, with 24K moving to Dh548.50 and 22K to Dh508 on May 5.
The biggest increase came between May 5 and May 6, when 24K jumped Dh18 a gram in a single day to Dh566.50, while 22K rose Dh16.50 to Dh524.50. Thursday’s move added another Dh3 to 24K and Dh2.75 to 22K, keeping the market firmly above the lows seen earlier this week.
The week’s movement is important for jewellery buyers because even small per-gram changes can add up on heavier purchases. A 20-gram 22K jewellery purchase would cost about Dh385 more on Thursday than it did on Monday, before making charges and VAT.
Global gold holds above $4,700
The Dubai increase followed gains in international bullion prices, with gold trading above $4,700 an ounce after rising 3% on Wednesday, its biggest daily advance since late March.
Gold was supported by lower bond yields and a weaker dollar, both of which tend to help bullion. The metal is priced in the US currency and does not pay interest, making it more attractive when yields fall.
The latest market move came while investors assessed signs of possible progress toward a US-Iran deal. Iran is evaluating a fresh US proposal to end the nearly 10-week war, according to a person familiar with the matter, while China has added to global pressure for a ceasefire.
US President Donald Trump said on social media on Wednesday that the US would end its military campaign and lift its blockade of the Strait of Hormuz “assuming Iran agrees to give what has been agreed to, which is, perhaps, a big assumption.”
Oil prices came under pressure on hopes of a deal, helping ease some inflation concerns. Lower energy prices can reduce pressure on bond yields, which in turn supports gold.
Inflation risks still in focus
Markets are still cautious because US inflation remains above the Federal Reserve’s 2% target. Federal Reserve Bank of Chicago President Austan Goolsbee and St. Louis Fed President Alberto Musalem both signalled caution on inflation, even while markets reacted to hopes of easing geopolitical risk.
Gold has fallen 11% since the conflict erupted in late February. The closure of the Strait of Hormuz and the resulting energy price shock had raised concerns that inflation would stay higher for longer, delaying interest rate cuts and hurting demand for non-yielding assets such as gold.
- With inputs from Bloomberg.
