Gold prices recover in Dubai as US announces ceasefire extension with Iran

[Editor's Note: Follow Khaleej Times live blog for the latest regional developments with the US-Israel-Iran ceasefire now in effect.]

Gold prices recovered in Dubai when markets opened on Wednesday, but they are still down by more than Dh9 per gram so far this week.

The 24K gold price was trading at Dh573.0 per gram on Wednesday morning, up from Dh568.5 per gram at the close of markets on Tuesday. However, it is still down by Dh9.25 per gram so far this week.

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Among the other variants, 22K, 21K, 18K and 14K were trading at Dh530.5, Dh508.75, Dh436.0 and Dh340.0 per gram, respectively.

Globally, gold was trading at $4,762 per ounce, up 1.3 per cent, as the US extended the ceasefire with Iran. Silver was up 2.6 per cent at $78.37 an ounce.

US President Donald Trump said he was extending the ceasefire with Iran to allow more time for negotiations, but would maintain Washington's naval blockade of the country's ports.

Linh Tran, market analyst at xs.com, said gold has recorded a three-week winning streak, marking a notable recovery phase following previous volatility. However, what stands out is that this rally has not been driven by a single factor, but rather by a synchronised shift across key macro variables — particularly the US dollar, Treasury yields and monetary policy expectations.

“Geopolitical risks have also remained elevated, offering an additional layer of support for gold, particularly as markets remain sensitive to developments affecting energy prices and global supply chains. That said, this factor has played more of a supportive role, while the primary drivers remain the decline in the dollar and bond yields,” she added.