Gold prices in Dubai reached their highest level in more than two months on Tuesday, August 11, as 24K gold rose by three dirhams from the previous day to reach AED 531.25 per gram. 22K gold also saw an identical increase, priced at AED 492.

24K gold is now AED 45.75 more expensive than on August 3, when it was trading at AED 485.50 per gram. During the same period, 22K gold rose from AED 449.50 to AED 492, an increase of AED 42.50.

This growth continues a rapid recovery following a decline in July. 24K gold had dropped to AED 481.50 on July 17, but the upward trend intensified in early August, climbing from AED 492.25 on August 4 to AED 523.75 on August 7, and reaching AED 531.25 on Tuesday. However, the current price remains below the 90-day peak of AED 563.75 recorded on May 14.

In the global market, gold prices surpassed the $4,400 per ounce mark, hitting a two-month high. Increased capital inflows, buying at lower prices, rising investment in Chinese gold exchange-traded funds (ETFs), and central bank purchases were cited as supporting factors for the market.

Ahmed Assiri, Research Strategist at Pepperstone, believes that fresh capital flows and improved market sentiment are currently playing a more significant role in price growth than geopolitical tensions, although developments in the Strait of Hormuz and US-Iran relations remain key considerations for investors.

Market focus has now shifted to US consumer inflation data, which could influence expectations regarding the Federal Reserve's future interest rate path and, consequently, the direction of gold prices.