Gold prices in the UAE saw a notable uptick on Tuesday morning, with 24K gold rising by Dh5 to reach Dh488 per gram. Despite this short-term gain, the precious metal continues to grapple with a complex global market. While regional geopolitical tensions are driving some investors toward gold as a traditional safe-haven asset, these gains are being tempered by persistent inflation concerns and the growing likelihood of the US Federal Reserve maintaining higher interest rates through the end of the year.

Market analysts, including those from Century Financial, note that rising oil prices—with Brent crude surpassing $90 per barrel—are fueling fears that energy costs will keep inflation elevated, putting pressure on non-yielding assets like gold. Technically, the metal remains in a bearish trend, trading within a descending channel. While there is potential for recovery if gold breaks past immediate resistance levels, experts warn that any significant downside move below the $3,970 mark could lead to further losses as the market balances geopolitical uncertainty against the reality of a "higher-for-longer" interest rate environment.