Gold prices in Dubai climbed to their highest level in more than three months, continuing this month’s upward trend and moving closer to the Dh600 mark.

At the start of trading on Monday, 24-karat gold was priced at Dh559.50 per gram, up Dh3.50 from the end of the week.

Other gold rates were: 22-karat at Dh518 per gram, 21-karat at Dh496.75, 18-karat at Dh425.75 and 14-karat at Dh332.

In global markets, spot gold rose 0.58 per cent to $4,641.5 an ounce by 9.10am UAE time, its highest level since mid-May.

Silver, meanwhile, fell 0.37 per cent to trade at $68.95 an ounce.

Analysts said lower US Treasury yields, a weaker dollar and persistent policy uncertainty were the main factors supporting gold prices.

Naeem Aslam, chief investment officer at Zaye Capital Markets, said US President Donald Trump’s proposed three-day pause on imposing 50 per cent tariffs on Canada had eased one source of near-term economic tension, potentially reducing short-term demand for defensive assets.

However, he said Trump’s comments on Iran and continuing geopolitical uncertainty were still sustaining a significant portion of gold’s safe-haven demand.

Aslam added: “The emphasis on maintaining US leadership in artificial intelligence, technology and digital assets could increase overall market risk appetite, but these factors do not eliminate the impact of real yields, currency volatility, financial conditions and geopolitical hedging on gold.”

Samer Hasn, senior market analyst at XS.com, said gold’s rebound had coincided with the market entering a new phase of the capital cycle, in which funds were shifting from high-yielding US Treasuries into alternative assets amid uncertainty in fixed-income markets.

Reuters also reported that gold had started the week strongly and was attracting renewed buying interest. Tim Waterer, chief market analyst at KCM Trade, said the weaker dollar had been the main factor supporting gold, while markets were also assessing what rising bond yields signalled about underlying economic pressures and policy uncertainty.