Dubai gold prices recover after October slide

Gold prices in Dubai rebounded on Monday morning, recouping some of the losses that saw the precious metal shed more than Dh20 per gram this month.

According to data from the Dubai Jewellery Group, the 24K variant opened at Dh484.0 per gram, up from Dh481.5 at the weekend close. At the start of October, 24K gold was trading at around Dh500 per gram.

Other variants also rise

Other gold categories also opened higher on Monday. The 22K gold price stood at Dh448.25 per gram, 21K at Dh429.75, and 18K at Dh368.25. The most affordable option, 14K gold, continued to trade below the Dh300 mark at Dh287.25 per gram.

Globally, spot gold rose 0.38 percent to $4,013.86 an ounce, while silver gained 0.28 percent to $199.26 an ounce.

Geopolitical tensions fail to boost safe-haven demand

Naeem Aslam, chief investment officer at Zaye Capital Markets, said gold was finding it difficult to attract sustained safe-haven buying despite rising geopolitical uncertainty.

He noted that US President Donald Trump’s statement that the United States was not negotiating with Iran, along with his warning that developments could unfold relatively soon, had intensified fears of further military confrontation and disruptions to energy supplies.

“The immediate challenge for gold is that geopolitical tensions are generating competing market forces. While escalating conflict typically encourages investors to seek protection in bullion, rising oil prices can strengthen inflation expectations and increase the likelihood of interest rates remaining elevated. This raises the opportunity cost of holding gold and makes the $4,000 psychological support level particularly important,” Aslam added.

Oil prices retreat after weekly gains

Oil prices were trending lower on Monday morning after strong gains last week. West Texas Intermediate crude fell 2.18 percent to $101 a barrel, while Brent crude dropped 1.89 percent to $114.5 a barrel.