Dubai gold prices experienced an uptick on Monday, presenting buyers with an increase of up to Dh5 per gram relative to the prior day. The 24-karat variety was priced at Dh493.50 per gram at 8.41 am, an increase from Dh488.50 on Sunday, while the price of 22-karat gold rose to Dh457 from Dh452.25. The increase positioned gold prices at levels observed earlier in July, although rates continued to fall short of the month’s peak and the Dh500 threshold surpassed last week. Gold prices exhibited notable fluctuations throughout July, starting with 24-karat gold priced at Dh489.75 at the beginning of the month and subsequently surpassing Dh500 in the initial week.

The rate reached Dh503 on July 4 and July 5, marking its highest level so far this month, while 22-karat gold climbed to Dh466 during the same period. Prices subsequently declined, with 24-karat gold falling to Dh481.50 on July 16 and July 17, while the 22-karat variety dropped to Dh446. The market subsequently rebounded, with 24-karat gold increasing from Dh483 on July 20 to Dh500.75 on July 22. Prices declined to Dh487.50 the next day before rising to Dh493.50 on Monday. Monday’s rate positions 24-karat gold Dh9.50 beneath the July peak and Dh12 above the lowest level recorded for the month. The 22-karat rate stands Dh9 beneath its monthly peak and Dh11 above the low recorded in July. International bullion increased by as much as 1.6%, surpassing $4,100 an ounce, following a nearly 1% gain in the preceding week. The increase followed a cessation of hostilities between the US and Iran over the weekend, which alleviated apprehensions regarding oil supplies and inflation.

The US has ceased an ongoing series of strikes against Iran that had persisted for nearly two weeks, doing so without any formal explanation or announcement. In response, Iran has signalled its intention to avoid retaliatory actions and has engaged in discussions with Oman regarding shipping routes through the Strait of Hormuz. Oil prices experienced a decline at the beginning of the week, with Brent witnessing a drop exceeding 7%, falling below $90 a barrel in the initial moments before partially recuperating those losses. The decline occurred notwithstanding missile attacks attributed to Tehran-backed Houthis in Yemen targeting facilities associated with Saudi Aramco in the Red Sea port towns of Jizan and Yanbu.

Gold has maintained proximity to $4,000 an ounce since late June, with purchases during price declines contributing to the metal’s stability above the psychological threshold regarded by certain traders as a significant support level. Bullion remains over 20% below its level prior to the US and Israel’s strikes on Iran in late February, marking the conclusion of a multiyear rally that had propelled gold to a record near $5,600 an ounce just a month earlier. Renewed fighting in the Middle East has heightened inflation concerns in recent weeks and amplified the likelihood of elevated US interest rates, exerting pressure on non-yielding gold. Attention will now focus on the Federal Reserve’s interest-rate decision this week, as elevated energy costs stand in contrast to a lower-than-anticipated reading on US consumer prices for June.