Dubai gold prices rebound after losing over Dh20 per gram in October

Dubai gold prices recovered on Monday morning after losing more than Dh20 per gram this month, according to data from the Dubai Jewellery Group.

The 24K gold price stood at Dh484 per gram on Monday morning, up from Dh481.50 per gram at the close of trading over the weekend. However, the rate remained below the approximately Dh500 per gram recorded at the beginning of October.

Other gold categories also opened higher at the start of the week, reflecting a modest recovery in local prices.

Dubai Gold Prices on October 26

The latest gold rates in Dubai showed an increase across all major purity categories on Monday morning.

24K gold: Dh484 per gram
22K gold: Dh448.25 per gram
21K gold: Dh429.75 per gram
18K gold: Dh368.25 per gram
14K gold: Dh287.25 per gram

The 14K variant remained below Dh300 per gram, making it the most affordable option among the listed gold categories.

Despite the latest recovery, 24K gold remained lower than its level at the start of the month.

International Gold Prices Rise

International gold prices also moved higher on Monday morning. Spot gold increased by 0.38 per cent to $4,013.86 per ounce, while silver rose 0.28 per cent to $199.26 per ounce.

However, gold continues to face challenges in attracting sustained demand as a safe-haven asset amid escalating geopolitical uncertainty.

Naeem Aslam, Chief Investment Officer of Zaye Capital Markets, said that investors were weighing geopolitical risks against inflation concerns and the possibility of interest rates remaining elevated.

Geopolitical Tensions Create Uncertainty for Gold

Aslam said US President Donald Trump’s statement that the United States was not negotiating with Iran, alongside his warning that developments could unfold relatively soon, had raised concerns about further military confrontation and potential energy supply disruptions.

Although geopolitical tensions typically increase demand for gold as a safe-haven investment, rising oil prices can create competing pressures.

Higher oil prices may strengthen inflation expectations and increase the likelihood that interest rates will remain elevated. This can reduce gold’s appeal because the precious metal does not offer interest income.

Aslam also highlighted the importance of the $4,000-per-ounce level as a key psychological support level for international gold prices.

Oil Prices Fall After Last Week’s Gains

Oil prices moved lower on Monday morning after recording strong gains last week.

West Texas Intermediate (WTI) crude was trading at $101 per barrel, down 2.18 per cent, while Brent crude fell 1.89 per cent to $114.50 per barrel.

The movement in oil prices remains important for gold markets because energy costs influence inflation expectations and can affect investor sentiment regarding future interest rates.

What Dubai Gold Buyers Should Know

Although Dubai gold prices recovered at the start of the week, the market remains sensitive to geopolitical developments, oil price movements and expectations surrounding interest rates.

For buyers, the latest rates provide an indication of the market price per gram, but the final jewellery purchase price may vary depending on making charges, retailer pricing and applicable taxes.

Gold prices may continue to fluctuate as investors assess developments in the Middle East and their potential impact on global financial markets.