Gold prices in the UAE experienced a modest increase on Monday morning, yet buyers are still paying significantly less compared to the market’s peak in July. The 24-karat variety was priced at Dh484.50 at 10.55 am, reflecting an increase of 25 fils from Dh484.25 over the weekend. The 22-karat variety increased by 50 fils, rising from Dh448.25 to Dh448.75. Monday’s movement positions 24K gold at Dh18.50 beneath its July 5 high of Dh503, whereas 22K stands Dh17.25 below its monthly peak of Dh466.

A buyer acquiring 10 grams of 24K gold would incur a cost that is Dh185 lower than the peak observed in July, whereas the corresponding reduction for 22K gold would amount to Dh172.50. Gold commenced July at Dh489.75 for 24K and Dh453.50 for 22K, subsequently experiencing an upward trajectory during the initial week of the month. The 24K rate achieved Dh503 on July 4 and July 5, while the 22K rate reached Dh466 during the same timeframe. Prices subsequently experienced a decline, with 24K decreasing to Dh481.50 on July 16 and July 17, while 22K fell to Dh446. Monday’s price indicates that 24K has rebounded by Dh3 from its mid-month low, whereas 22K has increased by Dh2.75.

Rates continue to be lower than they were at the start of July, with 24K decreasing by Dh5.25 since July 1 and 22K declining by Dh4.75. International gold prices steadied at around $4,010 an ounce after losing more than 2% last week, as traders evaluated the implications of renewed hostilities between the US and Iran. Brent crude surged past $90 a barrel in the wake of assaults on an oil installation in Kuwait and on vessels navigating the Strait of Hormuz.

The renewed conflict has led to an increase in energy and commodity prices, heightening worries that ongoing inflation may ultimately affect the interest-rate decisions of the US Federal Reserve. Elevated borrowing costs typically exert downward pressure on gold, as the metal fails to yield interest income. Bullion has experienced limited fluctuations, hovering around $4,000 in recent weeks, following a 14% decline in the second quarter, marking its most significant quarterly downturn since 2013.