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Gold prices edge higher in UAE despite softer global bullion prices
Analysts say that while it is too early to conclude that the recent inverse relationship between oil and gold has broken down, the latest price action suggests investors are shift their focus
- PUBLISHED: Wed 15 Jul 2026, 9:22 AM
Gold prices in the UAE inched higher on Wednesday morning even as global bullion prices slipped, with investors weighing the impact of elevated oil prices, inflation concerns and expectations of further US interest rate hikes.
The 24K gold price was trading at Dh486.25 per gram at the opening of the markets on Wednesday, up from Dh484.50 per gram a day earlier. The 22K variant opened at Dh450.50 per gram, while 21K, 18K and 14K were trading at Dh431.75, Dh370.25 and Dh288.75 per gram, respectively.
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Spot gold was trading at $4,027.34 per ounce, down 0.87 per cent, while silver fell 0.79 per cent to $58.31 per ounce.
Ole Hansen, head of commodity strategy at Saxo Bank, said rising oil prices have recently created headwinds for precious metals by lifting inflation expectations, pushing bond yields higher and strengthening the US dollar.
"That dynamic was also evident in the past few days as US Treasury yields moved higher, with the two-year yield climbing to its highest level in more than a year as markets priced a greater likelihood of further Federal Reserve tightening," he said.
Hansen noted that expectations for tighter US monetary policy initially pushed gold below the psychologically important $4,000 level, as traders priced in the possibility of another interest rate increase.
However, he said bullion found support as oil prices continued to climb.
"As Brent extended its advance towards $86 and beyond, bullion stopped falling. Instead, buyers re-emerged, lifting gold back above $4,000 despite oil, yields and inflation concerns remaining elevated," he said.
While it is too early to conclude that the recent inverse relationship between oil and gold has broken down, Hansen said the latest price action suggests investors may be starting to shift their focus.
He said markets are increasingly looking beyond the inflationary impact of higher energy prices and paying greater attention to the broader economic risks associated with a prolonged energy shock.
"Persistently elevated diesel, gasoline and natural gas prices have the potential to slow economic growth, squeeze corporate margins and weaken consumer spending. Should those concerns begin to outweigh the prospect of tighter monetary policy, gold's traditional safe-haven characteristics may once again come to dominate price action," he added.
Hind Aldah is a business reporter based in Sharjah. In her spare time, you will find her playing classical guitar, painting amateur oil paintings, or crocheting the same old scarf that leads nowhere.