Gold prices in the UAE edged lower on Tuesday after climbing to a three-month high, offering some relief to buyers following a strong run-up in rates.

In Dubai, 24K gold was priced at Dh557.50 per gram, while 22K stood at Dh516.25. The 21K and 18K variants were trading at Dh495 and Dh424.25 per gram, respectively.

The slight decline follows a strong rally in recent days, with 24K gold having risen by more than Dh16 per gram compared with its level on August 19.

Globally, spot gold was trading around $4,638 per ounce, easing slightly from recent highs, while silver was around $68 per ounce.

Market attention remains focused on US Treasury yields, the dollar, oil prices and geopolitical developments, particularly tensions surrounding Iran and the Strait of Hormuz.

Analysts say an escalation in geopolitical tensions could strengthen safe-haven demand and provide further support for gold, while easing tensions and higher US yields could limit further gains.

Despite the latest pullback, gold remains at elevated levels in the UAE following its strong August rally.