In Dubai, 24K gold maintained its position at Dh547.50 per gram, consistent with Sunday’s rate, while 22K gold also showed no change, remaining at Dh507 per gram. The stability persists despite a 0.41 per cent decline in international spot gold prices, which fell to $4,504.51 an ounce after reaching a two-week high in the preceding session. Analysts indicate that the market is ensnared in a struggle between opposing influences. On one hand, geopolitical uncertainty surrounding Iran, Israel, and Lebanon is bolstering demand for safe-haven assets such as bullion. Conversely, elevated oil prices and a robust US dollar are constraining gold’s upward trajectory. Reports indicate that gold experienced a slight decline following a rise of over 2 percent in oil prices, as investors anticipated US President Donald Trump’s decision regarding a proposed extension of the Iran ceasefire agreement.

Tim Waterer stated that the increase in oil prices and the uncertainty surrounding US-Iran negotiations were “keeping gold off balance” at the start of the week. For shoppers in the UAE, the stagnation of local prices could present a brief opportunity prior to the resurgence of volatility. Jewellers and bullion traders in Dubai have observed a trend of consumers postponing purchases in recent weeks, driven by high prices, especially for bridal jewellery and larger investment items. Ipek Ozkardeskaya noted that global investors have predominantly concentrated on the surging technology and AI stocks, even in the face of escalating geopolitical risks and persistent inflationary pressures. “Oil prices remain elevated to a degree that poses a risk to economic activity,” she stated, noting that markets continue to undervalue the potential dangers associated with the Middle East conflict and the constricting global energy supplies.

She cautioned that should tensions escalate further and oil inventories continue to tighten, crude prices may surge significantly, exacerbating inflationary pressures globally. Higher inflation and elevated interest rates typically diminish gold’s appeal, as bullion does not provide interest income. Nonetheless, the longer-term outlook for gold continues to be positive. Waterer stated that gold might reach as much as $5,500 an ounce by the conclusion of 2026, contingent upon factors such as a depreciating US dollar, reduced oil prices, and ongoing purchases by central banks. Indian gold prices also remained stable on Monday, reflecting the consistency observed in Dubai.

In India, 24K gold was priced at Rs 15,704 per gram, equating to Rs 157,040 per 10 grams, whereas 22K gold was valued at Rs 14,395 per gram, amounting to Rs 143,950 per 10 grams. Indian consumers are persistently managing unprecedented price levels in anticipation of the forthcoming festive and wedding demand periods. Analysts indicate that consumers in India, a significant player in the global gold market, are exhibiting heightened caution, with a notable trend towards lighter jewellery purchases or a preference to delay buying until price corrections occur.