Gold prices in Dubai experienced an upward trajectory on Friday, continuing a robust trend that has elevated local rates to levels reminiscent of late May. At 8.45am, 24-karat gold was priced at Dh547.50, reflecting an increase of Dh3.50 from Dh544 on Thursday, whereas 22-karat gold experienced a rise of Dh3.25, moving from Dh503.75 to Dh507. The increase results in jewellery buyers encountering significantly elevated rates compared to those at the beginning of the month. The 24K rate has increased by Dh62, representing an approximate 12.8% rise from Dh485.50 on August 3, while the 22K rate has seen an uptick of Dh57.50 from Dh449.50 during the same timeframe.

Friday’s movement brings 24K gold back to the Dh547.50 level observed on May 30 and May 31. It currently stands at Dh2.50 below the Dh550 recorded on May 29, which represents the peak level observed in the three-month price data. The recent rise has accelerated this week. The 24K rate was recorded at Dh526 on August 18, subsequently increasing to Dh540.75 on Wednesday, Dh544 on Thursday, and reaching Dh547.50 on Friday. The movement indicates that 24K has increased by Dh21.50 in just three days from Tuesday’s level, while 22K has risen from Dh487 to Dh507 during the same timeframe.

The increase in Dubai was preceded by another robust session in the global gold market, with bullion trading at approximately $4,530 per ounce and on track for a third consecutive weekly gain. Gold was set to conclude the week with an increase exceeding 3%. The US Treasury’s unexpected increase in buybacks of long-dated government debt contributed to a rise in bullion, as this action led to a decline in Treasury yields and the dollar on Wednesday. Treasury Secretary Scott Bessent stated on Thursday his readiness to broaden buybacks of more expensive debt and suggested that the administration would soon reveal a fiscal initiative designed to tackle the highest US borrowing costs in years.

Concerns regarding the increasing US government debt have contributed to the support of gold throughout its multi-year rally, as investors seek the metal as a viable alternative safe haven. Gold has appreciated approximately 11% on a global scale this month and has sustained a price above $4,000 per ounce since the middle of July. Despite the recent recovery, bullion continues to trade approximately 15% lower than the levels observed prior to the onset of the US-Iran conflict in late February.