Dubai gold prices moved higher on Tuesday morning after recent volatility, with buyers closely watching global tension, inflation concerns and the next market move.
Dubai gold prices edged higher on Tuesday morning, recovering slightly after recent declines as buyers kept a close watch on global developments amid ongoing geopolitical tension and inflation concerns.
At 9.45am, the price of 24K gold in Dubai stood at Dh607 per gram, up from Dh602.50 a day earlier. The price of 22K gold also moved higher to Dh562 from Dh557.75. The increase follows a period of sharp swings over the past two weeks, reflecting the uncertainty shaping sentiment in the wider market.
Through March, gold prices have moved across a wide range, giving buyers a clear sense of how quickly the market has been shifting. Earlier this month, 24K gold briefly touched Dh641 per gram, while 22K neared Dh594, before prices eased in the days that followed.
That pullback then continued, with prices slipping into the low Dh620s and moving further towards the Dh600 level over the past week. Daily moves remained uneven, with brief recoveries mixed with declines, showing a market reacting quickly to global cues. The latest rise suggests some stabilisation, although prices are still below their early March highs.
Globally, gold has been trading in a relatively narrow range as investors weigh inflation risks against efforts to contain disruptions in energy markets linked to the conflict in the Middle East. Safe-haven demand has continued to support bullion, while elevated oil prices and concerns around supply disruptions, particularly near the Strait of Hormuz, have kept markets on edge.
Higher energy costs have also added to inflation worries, reducing expectations of near-term interest rate cuts in the United States. With traders seeing little chance of a rate reduction at the Federal Reserve’s upcoming meeting, borrowing costs are expected to remain elevated. While higher rates typically weigh on gold because the metal does not offer interest, demand has remained firm this year due to geopolitical uncertainty and concerns over slower global growth.
Gold has risen around 16 per cent since the start of the year, supported by steady buying interest across key markets. In China, demand has stayed strong, with investors continuing to add to gold-backed exchange traded funds in recent weeks, helping keep local premiums above global prices.
For Dubai buyers, the rebound may offer some reassurance after days of steep movement, but the broader picture remains unsettled. The next direction for gold will depend largely on how global inflation, interest rate expectations and geopolitical risks continue to evolve.
