Oil prices falling below $100 a barrel on Wednesday provided the clearest sign yet that markets were taking the US-Israel-Iran ceasefire seriously — and gold in Dubai moved sharply in the same direction, according to Khaleej Times.
Spot gold crossed the $4,800-per-ounce threshold globally, reaching $4,802.37, a 3.1 percent advance. Silver outpaced it, climbing 6.7 percent to $76.72 per ounce. In Dubai, the 24K rate opened at AED578.75 per gram, up AED12.50 from Tuesday’s close of AED566.25 — the metal’s highest point in three weeks. The 22K variant climbed AED11.75 to AED536.00 per gram. Other categories also rose, with 21K at AED514.00, 18K at AED440.50, and 14K at AED343.50 per gram.
Brent and WTI crude settled at $95 and $96 a barrel respectively in Wednesday morning trade, retreating sharply after the three-way ceasefire agreement was announced. The deal had been in part brokered by Pakistan, which subsequently requested a two-week extension to give diplomacy further room to proceed.
Independent metals trader Tai Wong, speaking to Reuters, cautioned against reading too much into the initial moves. “This is a knee-jerk relief rally and it remains to be seen if Iran complies. For gold, the 200-day moving average at $4,930 and then $5,000 will be key hurdles. Similarly, $80–$81 is an important level for silver,” he said.
At Pepperstone, senior research strategist Michael Brown pointed to what traders would be watching next. “Participants will also be looking towards progress being made in upcoming peace talks between the US and Iran, as well as seeing evidence that commodity flows through Hormuz are beginning to normalize,” he said. Brown added that market attention would now shift toward whether the ceasefire holds.
The easing of hostilities reduced immediate fears over energy-supply disruptions, which had been a driver of inflation concerns across the region in recent weeks.
