Dubai: Gold prices in Dubai went down a little on Tuesday. Stayed above Dh520 following a month of big price changes. At 9:50 am, 24-karat gold was priced at Dh520.75 per gram compared with Dh521.25 on Monday. Meanwhile, 22-karat gold stood at Dh482.25 per gram, just a bit lower than the day’s Dh482.50.
Gold started June on a note, with 24-karat prices reaching Dh539.75 per gram before climbing to Dh542.50 on June 2. Then the market went down. By June 5, prices had dropped to Dh522.50 before going down to Dh492.50 on June 10. During the period, 22-karat gold fell to Dh456 per gram, which was a good time for people to buy jewellery.
Since then, gold prices have gone up steadily. Gold moved above Dh500 on June 11. Climbed to Dh521.25 by June 15 before settling at Dh520.75 on Tuesday. Although current prices are lower than the June peak, they are much higher than the week’s lows.
Recovery Supported by Global Factors
Market analysts say some international news has helped gold prices go up.
According to Linh Tran, Market Analyst at XS.com, global gold prices have gone up. Moved back above $4,300 per ounce after a sharp drop. The recovery has been driven by people buying gold when prices are low, as they reassess expectations for inflation, interest rates and the US dollar. Gold prices are also affected by oil prices.
Oil Prices Ease Inflation Concerns
One reason gold prices have gone up is that oil prices have gone down. Lower oil prices help reduce inflation pressures, which may mean the US Federal Reserve does not have to keep interest rates high for a time.
The US dollar has also shown signs of weakening making gold more attractive to investors because it becomes cheaper in non-dollar currencies. Global gold prices were near $4,315 per ounce after going up in sessions. Crude oil prices remained under pressure following reports that the Strait of Hormuz could reopen.
What Buyers Should Watch Next
Investors are now focused on the US Federal Reserve meeting, which could determine the next direction for gold prices.
If the US Federal Reserve is softer on interest rates, it could weaken the dollar further. Support more gains in gold. However, if policymakers are more hawkish, it may slow the recovery. Weigh on gold prices. Analysts also point to banks buying gold, investors wanting safe-haven assets, and improving exchange-traded fund (ETF) flows as factors supporting gold over the long term.
For UAE residents planning jewellery purchases or remittances linked to gold holdings, the market remains highly sensitive to developments in interest rates, inflation expectations and energy prices. While volatility is expected to continue, gold remains above its recent lows. This suggests that investor confidence has returned after the correction seen earlier this month.
