Time to sell? Dubai gold prices gain Dh21.75 in one day, highest in weeks

Vijay Valecha, Thu, Aug 6, 2026 Khaleej Times

The 24K variant gained Dh21.75 in one day and was trading at Dh514 per gram on Thursday morning, up from Dh492.25 a day before, at the market open on Wednesday

Dubai gold prices for the first time in over a month shot up to above the Dh500 mark amidst the possibility of reopening the Strait of Hormuz.

The 24K variant gained Dh21.75 in one day and was trading at Dh514 per gram on Thursday morning, up from Dh492.25 a day before, at the market open on Wednesday.

The other variants of the yellow metal, 22K, 21K, 18K, and 14K, were also trading higher at Dh475.75, Dh456, Dh391, and Dh305, respectively.

The spot gold price was trading at $4,260.43 per ounce, up 0.37 per cent. Silver remained steady, trading at $62.08, up 0.1 per cent.

Analysts say that market sentiment was supported by reports of the US, Iran, and Oman nearing an interim agreement to normalise shipping through the Strait of Hormuz.

The prospects for the agreement also helped ease inflation concerns and reduced expectations for further Federal Reserve tightening, said Vijay Valecha, CIO of Century Financial.

“The potential easing of geopolitical tensions has prompted investors to scale back expectations for additional rate hikes, with markets now fully pricing in just one Fed rate increase by year-end, compared with two expected only a week ago,” he said. “Lower interest-rate expectations are generally supportive of non-yielding assets such as gold.”

The yellow metal’s upward movement is backed by reduced expectations of Federal Reserve rate increases, with the market anticipating only one more rate hike by the end of the year, while renewed investments in Chinese gold ETFs support demand.

“Additional support for bullion continues to come from China, where gold-backed ETFs recorded a 14-day streak of inflows, the longest since March. The renewed institutional demand suggests improving investor sentiment in the world's largest bullion market and has helped keep prices above the psychologically important $4,000/oz level,” Valecha explained.

Khaleej Times