Dubai gold prices recover, but still trade below Dh500 per gram

Gold prices in Dubai rebounded on Thursday morning, with the 24K gold rate increasing by Dh4 per gram to Dh498. The recovery followed Wednesday's closing price of Dh494 per gram, although gold continues to face pressure from a stronger US dollar and rising bond yields.

Dubai Gold Rates Rise Across All Categories

Gold prices increased across all major purity categories in Dubai on Thursday morning. The latest rates were:

24K gold: Dh498 per gram
22K gold: Dh461.25 per gram
21K gold: Dh442.25 per gram
18K gold: Dh379 per gram
14K gold: Dh295.75 per gram

The rebound comes as investors monitor global economic developments and market movements that continue to influence precious metal prices.

Global Gold Prices Edge Higher

In international markets, spot gold rose by 0.44% to $4,132.50 per ounce. Meanwhile, silver prices slipped 0.02% to $60 per ounce.

Financial analyst Vijay Valecha, Chief Investment Officer at Century Financial, said both precious metals continue to face challenges from a stronger US dollar and higher bond yields, contributing to volatile trading conditions.

He noted that the US 10-year yield remained above 5.30%, with its negative relationship with gold strengthening recently amid fiscal concerns.

ETF Inflows and Central Bank Buying Support Gold

Despite recent price fluctuations, gold-backed exchange-traded funds (ETFs) have continued to attract investments.

According to Valecha, ETFs added 81,000 troy ounces of gold to their holdings during the latest trading session. This brought net purchases for the year to 2.19 million ounces, marking the third consecutive day of growth.

Central bank purchases are also providing support to the precious metal market. Gold buying by central banks reached 39 tonnes in August, up from July, Valecha added.

Key Gold Price Levels to Watch

From a technical perspective, Valecha identified the 4,100–4,120 range as a crucial support zone for gold. Prices recovered this level after an unsuccessful breakdown in the previous session. The zone also aligns with an ascending trendline that has been developing since June.

The next support level is around $4,050 per ounce, while resistance is expected near $4,180. If gold moves higher, the 4,220–4,250 range could become the next significant resistance zone.

The analyst highlighted the importance of monitoring price movements around these levels to assess potential market direction.

Silver Prices Face Key Support and Resistance Levels

Silver is also trading near important technical levels. According to Valecha, the 60–60.20 range represents crucial support, while initial resistance is expected between $61.80 and $62 per ounce.

A further resistance level sits around $63, linked to the volume-weighted average price (VWAP) anchored to the September Federal Reserve decision.

Investors will continue to monitor movements in the US dollar, bond yields, ETF flows and central bank purchases as they assess the near-term outlook for gold and silver. These factors could influence international bullion prices and, in turn, gold rates in Dubai.