Dubai gold prices approached their peak from August on Monday, presenting jewellery buyers with rates that have increased by nearly Dh44 per gram since the start of the month. The 24K variety was priced at Dh531 per gram at 8.34 am in Dubai on Monday, an increase from Dh527.50 on Sunday, while 22K gold rose to Dh491.75 from Dh488.50. Monday’s rate positions 24K gold at just Dh2.25 beneath its August peak of Dh533.25, which was noted on August 12, thereby maintaining prices near the upper limit of this month’s spectrum. Buyers monitoring gold since the beginning of August have observed a significant shift in just over a fortnight.

The 24K rate was recorded at Dh487.25 on August 1, reflecting an increase of Dh43.75 per gram, or nearly 9%, by Monday morning. The increase has been comparable for 22K gold, which has ascended from Dh451.25 at the beginning of August to Dh491.75, reflecting a gain of Dh40.50 per gram. Gold commenced August beneath Dh500 per gram for the 24K variety, declining to Dh485.50 on August 3 before experiencing an increase to Dh492.25 the subsequent day. The pace accelerated in the initial week, with 24K gold attaining Dh510.50 on August 6 and rising to Dh523.75 on August 7. Prices subsequently increased to Dh533.25 on August 12, before retracting to Dh523.50 the following day. Monday’s move back to Dh531 positions prices close to that August peak.

Internationally, gold extended a two-week advance and was trading near $4,400 an ounce after concluding the previous week with an increase of nearly 1%. Weaker US retail sales data and a decline in consumer sentiment exerted downward pressure on the dollar, alleviating concerns regarding a potential imminent increase in US interest rates. Such an increase could negatively impact gold, as the metal does not yield interest. A gauge of the US dollar declined by 0.2% on Monday, resulting in a decrease in the cost of dollar-priced bullion for purchasers utilising alternative currencies, concurrently with a steepening of the US Treasury yield curve. Gold’s recovery above $4,000 an ounce has coincided with a resurgence in investor demand and heightened purchases by central banks, notably including acquisitions by China.

Uncertainty surrounding global energy supplies persists following recent attacks on ships in the Strait of Hormuz late last week. Concurrently, the United States announced preparations for further measures aimed at Iran’s economy. Some vessels have continued to exit the strait with their satellite transponders switched off, which has contributed to stabilising energy prices. Meanwhile, Iran and Oman seem to be progressing toward an agreement on the management of the waterway. The United States is excluded from those discussions. Gold surpassed its 100-day moving average last week for the first time since April and remains near that level, while Dubai retail rates are currently approaching their peak for August.