Gold prices in Dubai are experiencing a period of volatility as they struggle to maintain momentum, despite a slight uptick in Tuesday morning trading. Currently, 24K gold is priced at Dh484.50 per gram, while 22K sits at Dh448.75. Meanwhile, 21K, 18K, and 14K variants are trading at Dh430.25, Dh368.75, and Dh287.75 per gram, respectively. Globally, spot gold saw a modest rise of 0.5 percent to $2,021 per ounce, yet analysts note that the metal is under significant downward pressure due to broader economic forces.

The primary factor weighing on gold is the recent surge in oil prices, triggered by escalating geopolitical tensions in the Middle East. With Brent crude and US West Texas Intermediate both hitting one-month highs, concerns regarding energy shipments through the Strait of Hormuz have intensified. Market experts point out that these rising energy costs are fueling inflation fears and strengthening the US dollar, which diminishes gold’s appeal as a non-yielding asset. As long as inflation remains persistent, investors are increasingly wary that the Federal Reserve may keep interest rates higher for longer, potentially overshadowing the traditional safe-haven demand that typically surfaces during times of international conflict.