Gold prices in Dubai extended their rally on Friday morning, positioning the yellow metal for its strongest weekly performance since January. This upward shift follows a period of market fluctuation and is largely attributed to softening oil prices. As of early Friday, 24K gold reached Dh314.0 per gram, marking a notable increase from Thursday’s closing price of Dh310.50. Other categories saw similar gains, with 22K, 21K, and 18K variants climbing to Dh290.0, Dh280.50, and Dh240.50 per gram, respectively.

Market experts suggest that the current price surge is driven by a complex mix of geopolitical tensions and economic indicators, including inflation concerns and labor market shifts. While discussions regarding the reopening of the Strait of Hormuz could potentially temper gold’s safe-haven appeal by easing energy supply fears, analysts note that lower energy costs may also lead to reduced inflation expectations. This scenario could ultimately lower Treasury yields and pave the way for a more accommodative monetary policy, which would likely bolster the long-term attractiveness of holding bullion.