Gold prices in Dubai have reached a significant milestone, climbing above the Dh500 mark for the first time in over a month. As of Thursday morning, the 24K variant saw a sharp daily increase of Dh21.75, reaching Dh514 per gram compared to the previous day’s Dh492.25. This upward momentum was mirrored across all categories, with 22K, 21K, 18K, and 14K gold also seeing notable gains. On the global stage, spot gold prices rose by 0.37 percent to trade at $4,260.43 per ounce, while silver held steady with a marginal 0.1 percent increase.

Market experts attribute this rally to a combination of cooling geopolitical tensions and shifting expectations regarding U.S. monetary policy. Reports suggesting a potential interim agreement to normalize shipping through the Strait of Hormuz have eased inflation fears, leading investors to scale back their outlook on Federal Reserve rate hikes. According to Vijay Valecha, CIO of Century Financial, the market now anticipates only one more rate increase before the end of the year, which naturally benefits non-yielding assets like gold. Furthermore, robust institutional demand from China—evidenced by a 14-day streak of inflows into gold-backed ETFs—has provided additional stability, keeping prices firmly anchored above the key $4,000 per ounce threshold.