Gold Prices Ease In Dubai As Soaring Oil And US-Iran Tensions Unsettle Markets

2026-05-26 02:17:52

(MENAFN- Khaleej Times)

Precious metal prices lost Dh4.5 per gram in early trade in Dubai on Tuesday morning as oil prices jumped over two per cent due to US-Iran tensions

By: Waheed Abbas

Gold prices eased in Dubai on Tuesday morning, losing Dh4.5 per gram in early trade as US-Iran tensions lifted oil prices and stoked inflation fears in the US economy.

According to Dubai Jewellery Group data, the 24K gold price was trading at Dh545.25 per gram, down from Dh549.75 per gram at the close of markets on Monday.

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The precious metal lost some of the gains it made on Monday after US and Iranian officials said over the weekend that peace talks were progressing well.

The other variants of the precious metal also fell in early trade on Tuesday, with 22K, 21K, 18K and 14K trading at Dh505.0, Dh484.25, Dh415.0 and Dh323.75 per gram, respectively.

Spot gold was trading at $4,529 per ounce, down 0.9 per cent. Silver slumped two per cent to Dh281.35 per ounce.

Brent crude jumped 2.5 per cent to $98.54 a barrel on Tuesday morning as US forces on Monday conducted strikes in southern Iran against targets including boats attempting to lay mines and missile launch sites.

Washington and Tehran played down hopes for an imminent breakthrough in peace talks as Iran's top negotiator and its foreign minister were in Doha for talks with Qatar's prime minister on a potential deal with the US to end the three-month-old war.

"Even though we have a peace deal that is being done and dusted between the US and Iran, the damage that has been done to Middle East oil production facilities could actually prevent a rapid normalisation of oil flows into the rest of the world from the Middle East," said Kelvin Wong, a senior market analyst at Oanda.

"The market has started to price in this situation, showing very high odds of an interest rate hike to come this year," he said.

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