Dubai gold prices recovered on Wednesday after 24K gold fell below the AED 500 per gram mark earlier this week. The price rose by about AED 2 at the market opening. According to Dubai Jewellery Group data, 24K gold was trading at AED 503.50 per gram on Wednesday morning. It closed at AED 501.25 per gram on Tuesday.
The latest move follows a sharp decline on Monday. The 24K rate dropped below AED 500 that evening. Prices also stayed under pressure during Tuesday morning trading.
Other gold categories also recorded higher prices on Wednesday. The 22K rate stood at AED 466.25 per gram. The 21K price was AED 447.25, while 18K gold traded at AED 383.25 per gram. Spot gold gained 0.78% to reach USD 4,180 an ounce. The recovery came as investors continued to assess interest rates, bond yields and the US dollar.
Naeem Aslam, chief investment officer at Zaye Capital Markets, said higher Treasury yields and a stronger US dollar were creating pressure on bullion. Expectations for restrictive interest rates are also affecting investor demand for gold.
“At the same time, US President Donald Trump’s latest economic remarks are reinforcing the narrative of resilient US growth, with emphasis on strong employment, domestic manufacturing investment and large-scale industrial expansion,” he said.
Aslam said stronger industrial activity could support economic growth. He also pointed to tariffs as a factor that could add inflationary pressure. Higher bond yields can weigh on gold since the metal does not provide regular income. Geopolitical uncertainty, however, could support demand for the precious metal as a safe-haven asset.
“If negotiations reduce geopolitical risk, some safe-haven demand could fade, but any renewed escalation, energy-supply disruption or stronger oil-price shock could quickly restore defensive demand for gold,” he added. Gold prices are now being watched closely in Dubai after the brief move below AED 500. Market direction will depend on interest-rate expectations, currency movements and geopolitical developments.
Also Read: Dubai Gold Prices Fall to AED 505.50 as Global Bullion Slumps