Dubai gold prices experienced an uptick on Tuesday morning. The 24-karat variety was priced at Dh488 per gram at 9.44am, reflecting an increase of Dh5 from Dh483 on Monday. The 22-karat variety experienced an increase of Dh4.75, reaching Dh452 per gram, in contrast to Dh447.25 the previous day. Tuesday’s increase elevated prices further from the monthly low observed last week, although both varieties continue to be significantly below their July peaks.

The 24-karat rate commenced the month at Dh489.75, subsequently rising to Dh503 on July 4 and July 5, marking its peak level thus far this month. Prices subsequently declined, experiencing a brief recovery to Dh497.25 on July 9, before falling to Dh481.50 on both July 16 and July 17. Tuesday’s rate stands at Dh6.50 above the recent low, yet it is still Dh15 below the monthly peak. The 22-karat variety exhibited a comparable trend, increasing from Dh453.50 at the start of July to a peak of Dh466 on July 4 and July 5. It subsequently declined to Dh446 on July 16 and July 17 before rebounding to Dh452 on Tuesday. The current price stands Dh6 above the July low and Dh14 below the highest level recorded for the month. Buyers acquiring 10 grams of 24-karat gold will incur an additional cost of Dh50 compared to Monday’s prices, yet this transaction remains Dh150 cheaper than the peak observed in July.

Gold experienced an uptick in international markets as traders capitalised on the recent decline in bullion prices, while also keeping a close watch on ongoing developments in the Middle East. Bullion increased by as much as 1.5%, trading close to $4,068 an ounce, which represents its highest level in over two weeks. Oil prices declined following two consecutive sessions of increases, despite the United States initiating another series of strikes on Iranian targets. The recent escalation has intensified following the announcement by Yemen’s Iran-backed Houthi group regarding the imposition of a maritime blockade on Saudi Arabia. A military coalition led by the kingdom announced that it has implemented measures to safeguard vessels operating in the Red Sea.

The ongoing conflict has resulted in an increase in the prices of commodities essential for manufacturing and food production, compelling traders to evaluate the implications of elevated energy costs on inflationary trends. Rising inflation may sustain elevated borrowing costs or heighten the likelihood of additional interest rate measures by the US Federal Reserve. Elevated interest rates generally exert downward pressure on gold, as the metal yields no interest income. Soft US economic data and ongoing geopolitical uncertainty have offered some support, with gold drawing in buyers after declining close to the closely monitored $4,000-an-ounce threshold.