UAE: Gold prices in Dubai ease after making good gains

Gold prices eased in Dubai on Tuesday after jumping nearly Dh7 per gram on Monday.

At 9 am UAE time on Tuesday, the 24K gold price was trading at Dh606.5 per gram, down from Dh610.5 at the close of the market on Monday.

Similarly, the other variants of the yellow metal also slipped as 22K, 21K, 18K and 14K were selling at Dh561.5, Dh538.5, Dh461.5 and Dh360.0 per gram, respectively.

Gold was trading at $5,028.68 per ounce, down 0.5 per cent as investors turned cautious ahead of the key US jobs and inflation data due later this week.

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Gold extended its rally on Monday, climbing close to its highest level last week. The metal’s price levels stabilised to a certain extent after a significant correction, but the market could remain exposed to volatility.

“Structural support for the metal remains firm. Central bank demand continues to play a critical role, with China’s central bank extending its gold purchases for a fifteenth consecutive month in January. This persistent accumulation, alongside steady inflows into gold-backed ETFs, paints a bullish medium to long-term scenario for the precious metal,” said Abdelaziz Albogdady, market research and fintech strategy manager at FXEM.

He added that geopolitical risks continue to provide an additional layer of support. “Tensions between Russia and Ukraine remain elevated despite ongoing diplomatic efforts, sustaining a baseline level of risk. However, in the Middle East, some near-term relief emerged after US-Iran talks, easing immediate fears of military escalation,” Albogdady added.

Additionally, he said the decisive victory for Prime Minister Sanae Takaichi in Japan strengthened expectations of looser fiscal policy, potentially reinforcing demand for gold over time.