Dubai: Gold prices rose on Monday morning, hiking rates for jewelry purchasers after being constant over the weekend.Dubai: Gold prices rose on Monday morning, hiking rates for jewelry purchasers after being constant over the weekend.
The 24-karat variety was priced at Dh488.50 per gram at 8.17 a.m., up Dh1.25 from Dh487.25 on Sunday, while the 22-karat price jumped by Dh1 to Dh452.25 from Dh451.25. (View current UAE gold prices here, as well as those in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)
Dubai gold rates began August at Dh487.25 for 24K and Dh451.25 for 22K, with both prices remaining unchanged on Saturday and Sunday before rising on Monday.
Compared to July 31, the 24K rate has grown by Dh3.25 per gram, while the 22K variant has gained Dh3 per gram in the first three days of August.
July saw large fluctuations, with 24K gold trading at Dh503 per gram on July 5 before dropping to Dh481.50 on July 16 and 17. The rate rose to Dh500.75 on July 22, but fell again in the last few days of the month, closing at Dh485.25.
The 22K variety followed a similar trend, going from Dh466 per gram on July 5 to Dh446 on July 16 and 17. It then rose to Dh463.75 on July 22, before closing the month at Dh449.25.
Iran negotiations boost bullion. Gold rose in foreign markets after US President Donald Trump indicated fresh talks with Iran will begin later on Monday, bolstering hopes for progress in the dispute and a reduction in energy-driven inflation.
Bullion was priced at roughly $4,070 per ounce after rising 1% in July, the first monthly increase since February.
Trump announced that he has canceled a big attack on Iran after Middle Eastern allies, particularly Saudi Arabia, persuaded him to reach a compromise instead. Brent crude sank more than 7% in Asian trading on Monday morning.
Federal Reserve policy is in focus. Traders are also keeping an eye on the Federal Reserve, after The New York Times reported that Chairman Kevin Warsh was thinking about lowering the number of policy meetings.
Such a move would be a significant shift for the US central bank, which currently has eight meetings each year and voted 9-3 last Wednesday to keep interest rates steady. Three officials who opposed the decision warned that delaying action could lead to more forceful policy measures in the future, as the central bank faces continued pressure to keep inflation under control.
Gold has fallen more than 20% since the US-Iran war began more than five months ago. Higher energy costs have exacerbated inflation concerns and raised the possibility of interest rates remaining high, which impacts on precious metals because they do not generate interest income.
