Dubai Gold Prices Soar Amid US-Iran Tensions and Fed Uncertainty

Dubai's gold prices surged on Tuesday morning as local rates rebounded from Monday's decline, driven by US-Iran tensions and uncertainty surrounding the Federal Reserve's interest-rate outlook.

The 24-karat variety gained Dh3.75 per gram to reach Dh489.25 at 9:11 am on August 4, while the 22K rate rose by Dh3.50 to Dh453 per gram from Dh449.50. Buyers purchasing 21K gold were quoted Dh434.25 per gram, up from Dh431.

The increase in prices was attributed to diplomatic efforts aimed at cooling tensions between the US and Iran, which could push energy prices lower and reduce pressure on the Federal Reserve to raise interest rates. Gold traded near $4,060 an ounce after ending Monday little changed.