Gold prices in Dubai increased on Friday as global markets responded to persistent geopolitical tensions associated with the US-Israeli conflict with Iran, coupled with uncertainty regarding inflation and interest rates in the United States. In the UAE, 24K gold commenced trading at Dh544 per gram, an increase from the previous day’s closing price of Dh541.25. Meanwhile, 22K gold increased to Dh503.75 from Dh501.25. The gains occur as investors maintain a cautious stance in light of the uncertainty regarding a potential extension of the US-Iran ceasefire and the prevailing concerns about global economic stability.

International gold rates stood at 4,518.27, reflecting an increase of 16.37 points or 0.36 per cent. However, analysts indicate that the overarching trend for bullion continues to exhibit fragility following recent pronounced declines. Daniela Hathorn noted that gold has faced renewed pressure in recent sessions due to rising bond yields, a stronger US dollar, and diminishing geopolitical concerns, which collectively impact investor sentiment. According to Hathorn, markets have increasingly rotated back toward risk assets as concerns regarding the Middle East conflict start to diminish.

Indian gold prices experienced a significant increase today. The price of 24K gold rose to Rs 157,640 per 10 grams, up from Rs 156,050 yesterday, while 22K gold saw an increase to Rs 144,500 from Rs 143,050. Hathorn observed that enhanced expectations regarding US-Iran negotiations, coupled with diminished concerns over a significant energy supply disruption, have led to a decline in demand for safe-haven assets like gold. Declining oil prices have alleviated worries regarding a sustained inflation surge associated with the Iran conflict.