On August 11, Gold prices rose in Dubai and global markets, with 24K gold reaching AED531.25 per gram. The latest gains pushed 22K gold closer to the AED500 mark again as investors increased their exposure to the metal.
Data from the Dubai Jewellery Group showed 24K gold opening at AED531.25 per gram. The price gained AED3 per gram in one session and has climbed nearly AED35 over the past month. 21K gold was priced at AED471.75 per gram, while 18K and 14K gold traded at AED404.25 and AED315.25 respectively. The metal gained nearly 1% during the session.
Waleed Said, technical analyst at GivTrade, said, “Developments around the Strait of Hormuz continue to influence gold prices.”
“Last week's fireworks, Iran and Oman circling a shipping deal, tanker attacks, and Tehran refusing direct US talks, pushed gold to a two-month high near $4,350, while a shock US jobs miss dragged yields lower and gave bullion a second tailwind alongside the safe-haven bid. This week, all eyes stay on Hormuz: any real progress toward reopening the strait could extend this pullback toward $4,300 support, but another flare-up sends gold straight back toward record territory,” he added.
Ahmad Assiri, research strategist at Pepperstone, highlighted that gold moved above $4,400 early in the session as fresh buying returned to the market.
“What stands out in the recent price action is the strength of these flows after a period of relatively tight ranges and investors appear to be rebuilding exposure to gold, allowing prices to regain ground relatively quickly. This change in positioning and sentiment looks to be the main force behind the latest move towards $4,400 despite geopolitical developments remaining part of the broader backdrop,” he added.
Assiri emphasized that geopolitical tensions are still part of the wider market picture. However, current buying flows appear to have a stronger influence on prices.
“However, the magnitude of the latest gold move suggests that flows are currently having the greater influence on prices. If this change in sentiment continues to attract further flows, it could remain an important factor in determining whether gold can consolidate around $4,400 and potentially extend the recovery towards higher levels,” he said, adding that sustained inflows could also support another move higher.
The Strait of Hormuz will still be a key factor for traders. Any improvement in tensions could ease some safe-haven demand, while a fresh escalation could renew buying interest in gold.
Also Read: Dubai Gold Price Today: Rate Reaches AED 514 Per Gram