Gold recovered on Tuesday from a near one‑week low reached the previous day, as oil prices retreated on signs of possible further U.S.–Iran peace talks, easing inflation anxieties.
Spot gold rose 0.47 percent to $4,765.72 per ounce as of 9:16 UAE time, after touching its lowest level since April 7 in the prior session. U.S. gold futures for June delivery advanced 0.5 percent to $4,790.70.
In the UAE, local gold rates posted a modest gain. The price of 24K gold added AED5.50 to AED575.25, while 22K gold rose AED4.75 to AED532.50. 21K gold climbed AED4.75 to AED510.75, 18K gold increased AED4.00 to AED437.75, and 14K gold gained AED3.25 to AED341.50.
Oil prices slipped below $100 a barrel as hopes of renewed U.S.–Iran dialogue to end the conflict reduced concerns about supply disruptions linked to the U.S. blockade of the Strait of Hormuz.
Higher crude prices push inflation higher by raising transport and production costs. While inflation often boosts gold’s appeal as a hedge, elevated interest rates tend to weigh on demand for the non‑yielding metal.
Read more: Gold prices dip 0.55 percent to $4,722 as oil, dollar weigh on Fed cut bets
Reuters reported that negotiations between Washington and Tehran remained open, while U.S. Vice President JD Vance said in an interview that the United States expects Iran will make progress toward reopening the Strait of Hormuz.
Meanwhile, the U.S. military began enforcing a blockade of Iran’s ports on Monday, President Donald Trump said, with Tehran warning it would retaliate after weekend talks in Islamabad aimed at ending the conflict collapsed.
In addition, the U.S. dollar hovered near its weakest level in more than a month, making dollar‑priced gold relatively cheaper for holders of other currencies.
Traders now assign a 29 percent probability to a 25‑basis‑point U.S. rate cut this year, up from around 12 percent the previous week. Before the outbreak of the conflict, markets had been pricing in two rate cuts for 2026.
Among other precious metals, spot silver rose 2.07 percent to $77.07 per ounce, platinum added 0.17 percent to $2,091.30. Meanwhile, palladium fell 0.58 percent to $1,554.00.