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Gold prices were steady for the second consecutive day in Dubai on Wednesday as global investors await details of the US-Iran peace agreement and the US Federal Reserve’s verdict on interest rates.
The 24K and 22K gold prices were trading at Dh521.25 and Dh482.5 per gram, respectively, at the market open on Tuesday.
Among the other, more affordable variants, 21K, 18K and 14K were trading at Dh462.75, Dh396.75 and Dh309.25 per gram, respectively.
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Spot gold was down 0.28 per cent at $4,323 an ounce, while silver was steady at $69.93 per ounce.
US President Donald Trump said that the text of the US-Iran peace deal will be released soon. Tehran and Washington will sign the peace agreement in Switzerland on Friday, while the Fed will announce its decision on interest rates later today.
Ahmad Assiri, research strategist at Pepperstone, said that for much of the past three months, gold found itself in a counterintuitive bind, where escalating geopolitical tension in the Middle East was being read by markets not as a safe haven, but as an inflationary accelerant.
“The threat to shipping through the Strait of Hormuz pushed energy prices higher, which in turn drove US CPI above 4 per cent, reinforcing the case for tighter monetary policy and, at the same time, undermining the very asset that typically benefits from geopolitical stress. Investors pivoted toward pricing the implications of high interest rates, leaving gold caught in a trap of its own fundamentals. This dynamic is shifting with the emergence of what’s now expected to be a final US-Iran peace framework, though markets are rightly treating this early optimism with caution,” he said.
Assiri added that confidence-building measures, particularly demonstrable logistical flows through Hormuz, will be essential before the deal is considered durable enough to trade with conviction.
“If the risk of a broader regional conflagration recedes meaningfully, so too does the inflationary impulse it carried, and that is a net positive for gold, which had been punished because Middle East tension was feeding hawkish Fed expectations rather than safe haven demand,” he added.
