Gold prices in the Dubai market rose again on Monday, with buyers facing an increase of up to AED 5 per gram compared to the previous day.

According to rates announced at 8:41 AM, 24K gold rose to AED 493.50 from AED 488.50 on Sunday. The price of 22K gold also increased from AED 452.25 to AED 457.

With this growth, gold prices are once again approaching levels recorded in early July, though they remain below the monthly record and the AED 500 threshold crossed last week.

Prices rebound from July lows

Gold prices have experienced several fluctuations throughout July. 24K gold was trading at AED 489.75 at the beginning of the month and crossed the AED 500 mark in the first week.

The price of this gold grade reached AED 503 on July 4 and 5, marking the highest rate recorded this month. During the same period, 22K gold rose to AED 466.

Prices subsequently entered a downward trend, with 24K gold falling to AED 481.50 on July 16 and 17, while 22K gold dropped to AED 446.

The market then began a recovery trend, with 24K gold rising from AED 483 on July 20 to AED 500.75 on July 22. This rate decreased to AED 487.50 the following day before rising again to AED 493.50 on Monday.

Accordingly, Monday's 24K gold price is AED 9.50 lower than the July peak and AED 12 higher than the month's lowest rate. The 22K gold price is AED 9 away from the monthly high and AED 11 above the July floor.

Global gold crosses $4,100 mark

Global gold prices also rose by up to 1.6 percent, crossing the $4,100 per ounce threshold. The precious metal had also recorded a price increase of nearly one percent last week.

This increase followed a pause in hostilities between the US and Iran over the weekend, a development that somewhat eased concerns regarding oil supply and rising inflation.

The US ended its nearly two-week series of strikes against Iran without providing an explanation or official statement. Iran also announced it had refrained from retaliatory attacks and held discussions with Oman regarding shipping in the Strait of Hormuz.

Oil prices experienced a sharp decline at the start of the week, with Brent crude falling more than 7 percent in the opening minutes of trading to below $90 per barrel, though some of this decline was recovered later in the session.

This drop occurred as Tehran-backed Houthis in Yemen claimed responsibility for missile attacks on facilities linked to Saudi Aramco in the Red Sea port cities of Jizan and Yanbu.

Market focus shifts to Federal Reserve decision

Gold prices have remained near the $4,000 per ounce range since late June. Increased buying during price dips has helped the precious metal stay above this psychological threshold, a level some traders consider significant support.

However, gold prices remain more than 20 percent lower than the level recorded before the start of US and Israeli strikes on Iran in late February. These attacks ended gold's multi-year upward trend, which had pushed prices to a record near $5,600 per ounce a month earlier.

The renewed escalation of conflict in the Middle East in recent weeks had increased inflation concerns and strengthened the possibility of US interest rates remaining high, a factor that typically pressures gold as a non-yielding asset.

Investors are now focusing on the US Federal Reserve's interest rate decision this week. Rising energy costs on one hand and lower-than-expected US consumer inflation in June on the other have presented a complex situation for monetary policymakers.