Gold prices in Dubai saw a modest uptick during early Friday trading, with the 24K variant rising to Dh503.0 per gram, up from Thursday’s closing rate of Dh500.75. Other categories also mirrored this growth, with 22K, 21K, and 18K gold reaching Dh466.9, Dh446.75, and Dh363.0 per gram, respectively. This movement aligns with a global recovery in the precious metal, which was trading at $4,173 per ounce by mid-morning in the UAE.

Despite the daily increase, analysts suggest that the broader market remains sensitive to US economic data. Carsten Menke of Julius Baer pointed out that recent inflation figures in the United States have stoked fears of additional interest rate hikes by the Federal Reserve, which naturally creates a headwind for non-yielding assets like gold. While Menke anticipates limited short-term growth due to the Fed’s persistent inflation-fighting stance, he notes that long-term factors, such as concerns regarding US national debt, are likely to provide a solid floor for gold prices moving forward.