Gold prices in UAE drop Dh3.25 as ceasefire talks fail
The weighted price of 24K gold was at Dh562. Dh 50 per gram on Tuesday morning as compared to Dh 565. Based on the data available, it was $63.75 per gram at the market close on Monday.
The other variants also eased a bit, with 22K, 21K, 18K and 14K, trading at Dh520. 75, Dh508. 75, Dh499. 25 and Dh428. 0 per gram, respectively.
Spot gold surged $26.96 (Dh 102) to $4,652.74 (Dh 17,083.13) during the day and down from Dh17,335.9 per ounce as at market close on Monday headquarters in world.
Analysts believe gold’s future largely depends on the course of geopolitical tensions.
According to Vijay Valecha, Chief Investment Officer at Century Financial, a major escalation would put pressure on gold. If the Strait of Hormuz remains shut, and if crude routes via the Red Sea be also cut off, oil prices might actually spike back toward March 2026 highs. This raises US dollar and treasury yields, putting pressure on inflation concerns and gold as it becomes more clear that there economics leading to interest rate cuts (or not) is through much of 2026.
But he added that the opposite scenario of “A peace deal agreement, Strait of Hormuz re-opens and oil flows start to meaningfully improve: this will be a gold bull case as oil prices / treasury yields and the dollar go down with diminishing inflation expectations now potentially paving the way for future rate cuts. Gold may follow this upward trend until pre-conflict levels, he adds.
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