By: Economy Middle east

Gold prices ticked higher Tuesday recovering from Monday’s five-week trough, though advances remained constrained as persistent high crude oil levels sustained inflation concerns and muddied U.S. interest rate expectations.

Spot gold climbed 0.26 percent to $4,535.59 per ounce as of 10:27 UAE time, following over 2 percent Monday decline. U.S. gold futures for June delivery nudged 0.31 percent higher to $4,547.41.

In the UAE, gold rates edged higher today. 24-carat gold rose AED0.25 to AED546.25, matching gains in 22-carat (AED505.75), 21-carat (AED485.00), and 14-carat (AED324.25). Meanwhile, 18-carat gold held steady at AED415.50.

Dollar strengthened while Brent crude held above $113 per barrel amid ongoing U.S.-Iran truce efforts punctuated by Strait of Hormuz confrontations. Stronger dollar elevates dollar-denominated metals costs for non-U.S. currency holders.

Elevated oil prices fuel inflation pressures potentially prompting higher interest rates. Gold serves as inflation hedge yet elevated rates boost appeal of yield-bearing alternatives, curbing non-yielding metal attractiveness.

Traders now dismiss U.S. rate cuts this year, pricing 37 percent March 2027 hike probability versus 27 percent cut odds one week prior.

Key U.S. data awaited this week spans job openings, ADP employment report, and April payrolls.

Spot silver fell 0.34 percent to $72.77 per ounce, platinum advanced 0.95 percent to $1,974.65, and palladium gained 0.32 percent to $1,500.00.