Gold prices opened on a steady note in Dubai on Monday, marking a calm return to the markets following the extended Eid Al Adha holidays. The 24-karat variety was trading at Dh399 per gram in the morning session, showing a marginal uptick from last week’s close, though still remaining under the Dh400 threshold.
Other popular gold variants also saw modest movement. The 22K gold was priced at Dh369.5 per gram, while 21K and 18K were trading at Dh354.5 and Dh303.75 per gram, respectively.
The local bullion market resumed operations after a four-day break, as the UAE marked Eid Al Adha with public and private sector holidays from Thursday to Sunday. Despite global uncertainty, consumer demand for gold in the UAE remains resilient, particularly during festive and wedding seasons.
On the international front, spot gold was holding firm at $3,309.97 per ounce, buoyed by investor hopes of progress in US-China trade discussions. However, Friday saw the precious metal dip by over one percent after strong U.S. employment data clouded expectations of an imminent interest rate cut by the U.S. Federal Reserve.
Joseph Dahrieh, managing principal at Tickmill, noted that gold may face downward pressure due to a cautious tone from Fed policymakers. “Though markets continue to price in rate cuts later this year, the lack of urgency from policymakers could limit further upside for the bullion,” he said.
Adding to global uncertainties, geopolitical tensions are also shaping gold market dynamics. Linh Tran, a market analyst at xs.com, pointed to a dramatic escalation in the Russia-Ukraine conflict. “Ukraine recently launched a large-scale drone offensive—‘Operation Spiderweb’—targeting key Russian airbases. The strike involved over 100 drones launched from within Russian territory, significantly damaging strategic bombers and raising the threat of broader conflict,” Tran said.
Historically, rising geopolitical tensions have driven safe-haven demand, with gold typically benefiting first. As investors weigh mixed signals from global economic and political arenas, gold is likely to remain a closely watched asset in the coming weeks.
