Gold prices in the UAE edged higher on Thursday, with 24-karat gold rising to Dh498 per gram from Dh494, as international bullion prices recovered from a nine-week low.
Eighteen-karat gold was trading at Dh379 per gram, while 14-karat gold stood at Dh295.75.
The overnight increase of around Dh4 came as spot gold prices rebounded by as much as 0.8% to around $4,140 an ounce, following a sharp decline in the previous session.
The recovery was supported by renewed tensions in the Middle East, after projectiles struck a tanker off the coast of Qatar. Reports that the White House is considering military action against Iranian targets have also added to market uncertainty.
However, gold remains around 20% lower than its level when the US-Iran war began in late February, with higher energy costs fuelling inflation and contributing to tighter monetary policy.
A stronger US dollar, which has been trading near its highest level of the year, has also continued to weigh on gold prices.