05/04/2026 01:38 AST
Gold prices were steady in Dubai on Friday morning, with the precious metal expected to trade in a narrow range in the near term, according to Dubai Jewellery Group data.
The 24K gold price stood at Dh563.5 per gram on Friday morning, up half a dirham per gram. Among other variants of the yellow metal, 22K, 21K, 18K, and 14K were trading at Dh521.75, Dh500.25, Dh428.75, and Dh334.5 per gram, respectively.
Spot gold was trading at $4,676.4 per ounce, up 0.51 per cent, while silver gained 0.28 per cent to $72.99 per ounce.
Trading activity was slow due to the Good Friday holiday.
Gold has pulled back from the peak near the $4,800 level after failing to sustain its upward momentum.
"However, the current correction remains largely technical in nature rather than signalling a reversal of the broader trend. Following the sharp decline in March, the precious metal has rebounded in early April, indicating that underlying demand remains intact. Recent price action highlights a clear tug-of-war between persistent pressure from elevated Treasury yields and a strong US dollar amid ongoing inflation concerns, and, on the other hand, safe-haven demand driven by prolonged geopolitical risks," said Linh Tran, market analyst at xs.com.
Meanwhile, he added, the geopolitical backdrop is having a more complex impact than usual.
"Oil prices have climbed above $110 per barrel due to tensions in the Middle East, fuelling concerns over renewed inflationary pressures rather than simply boosting traditional safe-haven demand. In fact, gold has at times declined alongside risk assets throughout much of March, suggesting that its safe-haven role has weakened in the short term," Tran added.
Nevertheless, gold's strong recovery from the recent low of around $4,100 an ounce indicates that selling pressure is no longer dominant.
"The rebound has also been supported by dip-buying activity, particularly after a period of aggressive liquidation. This reinforces the view that the market is moving toward a rebalancing phase rather than establishing a new downtrend.
"Additionally, major institutions continue to maintain a constructive medium-term outlook. While acknowledging short-term pressure from shifting policy expectations, gold is still expected to recover following a consolidation phase, supported by portfolio diversification demand and persistent macroeconomic risks," she added.
In the near term, Tran sees gold trading within a broad range as the market balances the impact of elevated yields against underlying supportive factors.
"The $4,600 level serves as key support, while $4,800 remains a critical resistance that must be cleared to confirm a continuation of the uptrend. Despite the recent pullback from $4,800, the broader bullish structure remains intact, and current declines are likely to reflect a consolidation phase before the uptrend resumes," she concluded.
Khaleej Times
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