Dubai gold prices recovered on Monday morning after losing more than Dh20 per gram this month.
According to Dubai Jewellery Group data, the 24K gold price was trading at Dh484.0 per gram on Monday morning, up from Dh481.5 per gram at the close of trading over the weekend. The 24K variant was trading at around Dh500 per gram at the start of October.
Similarly, other variants also opened higher at the start of the week, with 22K, 21K and 18K gold trading at Dh448.25, Dh429.75 and Dh368.25 per gram, respectively. The 14K variant, the most affordable option, continued to trade below Dh300 per gram on Monday, at Dh287.25. Spot gold was up 0.38 per cent at $4,013.86 an ounce. Silver was trading at $199.26 an ounce, up 0.28 per cent.
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Naeem Aslam, CIO of Zaye Capital Markets, said gold was struggling to attract sustained safe-haven demand despite escalating geopolitical uncertainty.
He said US President Donald Trump’s declaration that the United States was not negotiating with Iran, alongside his warning that developments could unfold relatively soon, had heightened concerns about further military confrontation and energy supply disruptions.
“The immediate challenge for gold is that geopolitical tensions are generating competing market forces. While escalating conflict typically encourages investors to seek protection in bullion, rising oil prices can strengthen inflation expectations and increase the likelihood of interest rates remaining elevated. This raises the opportunity cost of holding gold and makes the $4,000 psychological support level particularly important,” Aslam added.
Oil prices were trending downward on Monday morning after strong gains last week. WTI and Brent were trading at $101 and $114.5 a barrel, down 2.18 per cent and 1.89 per cent, respectively.