Gold prices in the UAE eased slightly on Tuesday, with 24-karat gold trading at Dh502.75 per gram, down from Dh505 at the previous day’s opening, as global bullion markets remained volatile amid escalating Middle East tensions and inflation concerns.
The price of 22-karat gold stood at Dh465.50 per gram, while 18-karat gold traded at Dh382.50. Fourteen-karat gold fell below the Dh300 mark, trading at Dh298.25 per gram.
Globally, spot gold recovered to around $4,192 an ounce, up 0.63% as of 10 a.m. Dubai time, after closing 0.5% lower in the previous session. Brent crude traded near $106 a barrel.
Gold has lost around 20% since the US-Iran war began in late February, as higher energy prices fuelled inflation concerns and increased expectations of further interest rate hikes. Higher interest rates typically weigh on gold prices because the metal does not generate interest income.
Investors are closely watching US inflation data due on Wednesday for clues about the Federal Reserve’s next policy decision. Markets are pricing in an approximately 20% chance of an interest rate hike at its meeting this month, with another increase anticipated before the end of the year.
Meanwhile, silver rose 0.54% to $60.57 an ounce, while platinum and palladium also recorded gains.