Dubai gold prices saw a slight increase as easing tensions from the US-Iran ceasefire brought stability to global markets. Despite reduced volatility, gold continues to hold firm due to steady safe-haven demand.
Dubai gold prices recorded a modest increase on Friday, reflecting a shift in market sentiment as geopolitical tensions eased following indications of a ceasefire involving the United States, Iran and Israel. The rise, however, was relatively mild compared to the sharp fluctuations seen in previous sessions, suggesting that while uncertainty has reduced, investors are not completely moving away from gold as a safe-haven asset.
In the UAE market, 24-karat gold rose slightly to around Dh578.75 per gram, gaining Dh1 from the previous day, while 22-karat gold also increased by Dh1 to Dh536.00 per gram. This incremental rise marks a clear slowdown from the previous day’s stronger rally, when prices surged by more than Dh4 amid heightened geopolitical concerns. The latest movement indicates that markets are stabilising as traders reassess risk in light of improving diplomatic signals.
The earlier spike in gold prices had been driven by fears surrounding tensions in the Strait of Hormuz and uncertainty over the trajectory of US-Iran relations. As ceasefire developments emerged and the possibility of renewed negotiations gained traction, market participants began trimming the risk premium that had been built into gold prices. Despite this, bullion continues to hold firm, highlighting its enduring appeal during periods of uncertainty.
Across the wider Gulf region, gold price trends showed mixed signals. In Saudi Arabia, prices remained largely steady, with 24K gold holding at SR595 per gram and 22K at SR543, both unchanged from the previous close but still below earlier highs. This stability reflects a more cautious response from the Saudi market compared to the quicker adjustments typically seen in Dubai’s retail gold sector.
In contrast, India experienced a sharper decline in gold prices. The price of 24K gold dropped significantly to ₹154,200 per 10 grams from ₹155,560, while 22K fell to ₹141,350 from ₹142,600. The decline in the Indian market points to additional domestic factors influencing prices, including currency movements and demand-side pressures. Reports of disruptions in bullion imports have also contributed to the downward trend, even as global indicators remain relatively supportive.
On the global stage, gold prices remained broadly stable, hovering near elevated levels. Spot gold was recorded at approximately $4,786 per ounce, showing only a marginal increase and staying close to recent highs. The metal is on track for a fourth consecutive weekly gain, underlining sustained investor interest despite easing geopolitical tensions.
Analysts note that gold’s resilience is being supported by a combination of macroeconomic factors. A weaker US dollar has made gold more attractive to international buyers, while softer oil prices have helped ease inflation concerns. This has, in turn, reduced pressure on central banks to maintain aggressive interest rate hikes, creating a more favourable environment for bullion.
At the same time, markets continue to monitor developments surrounding the ceasefire and potential diplomatic negotiations. Any progress towards a lasting agreement could further stabilise oil prices and inflation expectations, potentially limiting gold’s upward momentum in the near term. However, lingering geopolitical risks and uncertainties mean that investors are still maintaining exposure to gold as a hedge.
Overall, the latest price movement suggests that the gold market is entering a phase of cautious recalibration. While the urgency to buy has eased compared to earlier in the week, the metal remains well-supported at current levels. Investors appear to be balancing optimism over easing tensions with the recognition that risks have not fully disappeared, keeping gold anchored as a key asset in uncertain times.
Source:Gulf News
Image Source: BusinessToday.in
