Post by : Shakul
Gold prices in Dubai witnessed a sharp rebound on Monday, reversing losses recorded over the weekend and pushing retail rates significantly higher. The sudden increase brought gold prices back to levels last seen during the first week of June.
The price of 24-karat gold rose to Dh521.75 per gram by Monday afternoon, compared to Dh508.50 per gram on Sunday. The increase reflects renewed momentum in global bullion markets and stronger investor demand.
22-Karat Gold Also Moves Higher
The rise was equally visible across other categories of gold. The price of 22-karat gold climbed to Dh483 per gram from Dh470.75, registering a gain of more than Dh12 within a single day.
The increase has impacted jewellery buyers and investors who delayed purchases during the weekend dip. Consumers planning large purchases are now facing noticeably higher costs compared to prices available just a day earlier.
Market Rebounds From June Lows
Dubai's gold market has experienced significant fluctuations throughout June. At the beginning of the month, 24-karat gold traded above Dh539 per gram before gradually declining during the following days.
The lowest point of the month came on June 10, when 24-karat gold dropped to Dh492.50 per gram. Since then, the market has steadily recovered, culminating in Monday's sharp rally that restored prices to levels seen during June 7 and June 8.
Global Events Support Bullion Rally
Analysts attribute the latest increase largely to developments in international markets. Gold and silver prices moved higher after the United States and Iran announced an interim agreement aimed at ending hostilities and reopening the Strait of Hormuz.
The diplomatic breakthrough reduced concerns over supply disruptions and improved investor confidence. Precious metals benefited from increased market activity as traders responded to changing economic expectations.
Bullion Prices Cross Major Milestone
International bullion prices climbed by as much as three percent, moving above $4,345 per ounce. Silver also recorded strong gains, rising more than four percent during trading sessions.
The market reaction highlighted the sensitivity of precious metals to geopolitical developments and major policy announcements that influence inflation and interest-rate expectations.
Oil Prices Ease After Agreement
The announcement also affected energy markets. Oil prices moved lower after reports confirmed progress toward reopening the Strait of Hormuz, one of the world's most important shipping routes for crude oil exports.
US President Donald Trump stated that he had authorized the reopening of the strategic waterway, while Iranian officials confirmed that an agreement had been reached, helping calm concerns over global energy supplies.
Buyers Monitor Market Direction
Market participants are now closely watching upcoming developments surrounding the formal signing of the agreement. Further progress could continue influencing both energy and precious metals markets in the coming days.
For Dubai's gold market, the latest rally demonstrates how international political and economic events continue to play a major role in shaping local gold prices and consumer purchasing decisions.
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