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Gold prices rise in Dubai on hopes of US-Iran peace deal
Possibility that the US and Iran could reach an agreement allowing the full reopening of the Strait of Hormuz triggered an immediate reaction across international markets
- PUBLISHED: Fri 8 May 2026, 10:09 AM
Gold prices opened higher in Dubai on Friday, driven by hopes of a US-Iran peace deal, which could ease inflation concerns in the world’s largest economy.
The 24K gold price was trading at Dh567.5 per gram on Friday morning, up Dh2.5 per gram from Thursday night’s close.
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Among the other variants of the precious metal, 22K, 21K, 18K and 14K gold prices were trading higher at Dh525.5, Dh504.0, Dh432.0 and Dh337.0 per gram, respectively.
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Spot gold was trading at $4,729.98 per ounce, up 0.65 per cent.
The gold market began Thursday’s session with a clearly bullish tone, extending its recovery for a third consecutive session and pushing the precious metal towards $4,760 per ounce, its highest level in approximately two weeks. Although it later experienced a modest round of profit-taking, the move confirmed that buying appetite remains solid, especially after the strong rally of more than 3 per cent in the previous session, which marked its best daily performance since late March.
“The main catalyst came from the geopolitical front, following new reports suggesting potential diplomatic progress between the United States and Iran. The possibility that both nations could reach an agreement allowing the full reopening of the Strait of Hormuz and the resumption of formal negotiations triggered an immediate reaction across international markets, partially reducing concerns over global energy supply,” said Simon-Peter Massabni.
“Expectations of de-escalation in the Middle East triggered a sharp correction in oil prices, with bearish moves bringing the energy market back to more stable levels after several weeks of elevated volatility. The decline in crude prices helped ease short-term inflation expectations, particularly in the United States and Europe, where investors had begun pricing in additional inflationary pressures linked to the conflict,” added Massabni.
