By: Economy Middle east

Gold prices firmed on Tuesday as investors balanced the impact of persistent oil shipment disruptions against a week of critical central bank policy decisions. Spot gold rose 0.4 percent to $5,030.98 per ounce by 09:46 Dubai time, while U.S. gold futures for April delivery advanced 0.65 percent to $5,034.74.

Within the UAE, the gold market reflected these gains through several price adjustments. The price of 24K gold increased AED4.5 to AED607.00, while 22K gold rose AED4.25 to AED562.00. Additionally, 21K gold rose AED4.25 to AED539.00, 18K gold climbed AED3.50 to AED462.00, and 14K gold rose AED2.75 to AED360.25.

The geopolitical landscape remains a primary driver of commodity volatility. While Iran’s foreign minister, Abbas Araqchi, suggested that the Strait of Hormuz is not entirely closed, the ongoing U.S.–Israeli conflict with Iran has kept the passage largely obstructed. This has stranded tankers for weeks and created the largest disruption to global supplies on record. Consequently, oil prices have held above $100 a barrel, prompting U.S. President Donald Trump to reiterate calls for an international effort to unblock the critical waterway.

Global monetary scrutiny

Higher energy costs continue to fuel global inflation by driving up production and transport expenses. While gold traditionally serves as a hedge against rising prices, the prospect of higher interest rates often dampens demand for the metal as investors shift toward yield-bearing assets.

The U.S. Federal Reserve is widely expected to maintain current interest rates for a second consecutive meeting during its policy statement on Wednesday. This week also marks the first time central banks in Britain, the Eurozone, Japan, Australia, Canada, Switzerland, and Sweden have met since the start of the conflict, adding a layer of economic scrutiny to the markets. In other precious metals, spot silver rose 1.49 percent to $81.63 per ounce, spot platinum gained 1.46 percent to $2,148.00, and palladium edged up 0.25 percent to $1,600.00.