Dubai gold prices surged past Dh500 on Friday morning, bouncing back from a midweek dip that briefly dropped 24-karat gold below Dh500 per gram, offering shoppers a brief buying opportunity. On Friday, 24-karat gold was priced at Dh505 per gram, down from Dh506.50 on Thursday evening. Meanwhile, 22-karat gold was at Dh467.75, compared to Dh469 the night before. Gold prices rebounded after a turbulent Thursday, with 24-karat gold at Dh491.75 per gram in the morning and 22-karat gold at Dh455.25, both rising sharply by evening. Gold is still significantly cheaper than earlier this month, despite the recent rebound. In June, 24-karat gold started at Dh539.75 per gram, peaking at Dh542.50 on June 2. Meanwhile, 22-karat gold was at Dh500 on June 1, rising to Dh502.25 the next day.

Prices remained high until June 4, with 24-karat gold at Dh538.50 and 22-karat at Dh498.50. Gold correction accelerated, dropping to Dh522.50 on June 5, stabilising at Dh521.75 on June 6 and 7, then slipping to Dh521.50 on June 8. This week saw a sharp decline in gold prices, with 24-karat dropping from Dh514.25 on June 9 to Dh492.50 on June 10, and 22-karat falling from Dh476.25 to Dh456 during the same timeframe. Gold prices hit Dh505 for 24-karat on Friday, bouncing back from Thursday’s low. However, they remain Dh37.50 below the June 2 mark, leaving buyers questioning if the recovery will continue or if prices will dip again.

“Gold steadied near multi-month lows as bond yields dipped and the dollar held firm today,” stated Frank Walbaum. Metal may face downside risks if inflation worries rise and yields and the dollar climb again. The market remains tough for bullion, as gold lacks interest income and faces pressure when investors anticipate prolonged high interest rates. Walbaum noted that investors are closely monitoring central bank signals, with European markets focused on the ECB’s policy decision and US inflation exceeding the Fed’s target. “In the U.S., recent inflation figures are still significantly above the Federal Reserve’s target, suggesting that interest rates may need to remain high for an extended period,” he stated.

Gold’s recent surge comes amid new Middle East tensions, as President Trump hinted at a potential weekend deal with Iran to resolve the ongoing conflict, impacting global markets and inflation worries. Bullion surged in global trading, marking its largest gain since March, following Trump’s announcement that Iran’s supreme leader agreed to a peace deal. However, he noted the pact isn’t finalised, calling it “a very strong memorandum of understanding that is a little bit conceptual.” Tehran remains silent on the agreement. Trump cancels third day of airstrikes on Iran, sparking comments. US forces targeted Iran for two days, prompting Tehran to declare the Strait of Hormuz closed to all vessels. The conflict has halted energy flows through Hormuz, driven up oil prices, and increased the risk of prolonged inflation, complicating central banks’ ability to lower interest rates.