Dubai Gold Prices Rebound Amid Lower Oil Prices and Weaker Dollar

Dubai's gold prices have continued their rebound on Tuesday morning amid lower oil prices and a subdued dollar. According to data by Dubai Jewellery Group, the 24K variant was trading at Dh523.25 per gram.

Globally, spot gold was trading at $4,346.5 per ounce, up 0.01% as of 9:12am UAE time. Financial analyst Vijay Valecha noted that pressure on gold eased after Treasury yields cooled following their recent spike.

Valecha explained that the bullion typically comes under pressure when yields rise, but in this case, lower oil prices and a weaker dollar have reinforced disinflationary tailwinds for gold. He added that rising fiscal deficits, higher debt burdens, and an eventual dollar-easing cycle continue to underpin the medium-term bullish case.