Dubai gold prices edge higher after early May drop

Dubai gold prices moved slightly higher on Tuesday morning, providing a modest rebound for shoppers after rates eased from the highs recorded at the beginning of the month.

The price of 24-karat gold stood at Dh546.25 per gram at 9:12am on Tuesday, compared with Dh546 on Monday, News.Az reports, citing Gulf News.

The 22-karat variety was priced at Dh505.75, up from Dh505.50 the previous day.

Although the increase was limited, it followed a clear downward trend from the start of the month. On May 1, the 24-karat rate was Dh557.50 per gram. It then eased to Dh556 on May 2 and May 3 before falling further to Dh546 on May 4. Despite Tuesday’s slight rise, 24-karat gold remains Dh11.25 per gram lower than the beginning of the month.

A similar pattern was seen in 22-karat gold. It dropped from Dh516.25 on May 1 to Dh514.75 on May 2 and May 3, before declining to Dh505.50 on Monday. With Tuesday’s price at Dh505.75, the 22-karat variety is still Dh10.50 per gram below its May 1 level.

The movement in local prices mirrored a recovery in global gold markets after a decline earlier in the week. Gold prices edged higher as buyers re-entered the market following a 2% drop on Monday. At the same time, ongoing geopolitical tensions in the Middle East continued to support inflation concerns and interest-rate uncertainty, contributing to renewed demand for bullion.

Gold rose by as much as 0.6% to around $4,550 an ounce, while spot gold was up 0.4% at $4,541.79 at 11:14am in Singapore.

The latest fluctuations in gold prices came amid renewed geopolitical escalation in the Middle East, which continues to influence global market sentiment.

News.Az 

By Nijat Babayev