Gold prices in Dubai saw a significant climb at the start of this week, with 24K gold rising by Dh6.25 to hit Dh496.75 per gram. This upward movement, reported by the Dubai Jewellery Group, extended across all categories, as 22K, 21K, 18K, and 14K variants also saw gains. The precious metal’s rally is largely attributed to a cooling in global oil prices and a weaker dollar, which together have helped ease some of the persistent inflationary pressures that recently hampered bullion.

The shift in market sentiment is closely tied to easing geopolitical tensions, particularly following a more conciliatory tone regarding Iran that has helped stabilize oil markets. With inflation concerns moderating, investors are now closely monitoring upcoming US economic data and potential Federal Reserve policy shifts. While recent positive US job growth numbers suggest a resilient labor market, fueling speculation of a potential interest rate hike this December, the immediate impact has been a boost for gold as global buyers take advantage of the softer dollar.