Gold prices were steady in Dubai on Friday morning as investors focus on the outcome of the US-Iran talks. But silver prices jumped over three per cent, outpacing the yellow metal in early trade.

At the opening of the markets in Dubai on Friday, 24K gold price was trading at Dh624.50 per gram, up Dh2.25 per gram from last night’s close

Among the other variants of the precious metal, 22K, 21K, 18K, and 14K were trading at Dh578.25, Dh554.5, Dh475.25 and Dh370.75 per gram, respectively.

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Spot gold was trading at $5,186.9 per ounce, up 0.18 per cent.

Silver was trading up over three per cent at Dh330 ($89.86) per ounce.

Linh Tran, market analyst at xs.com, said the yellow metal is trading just below the $5,200 per ounce level, reflecting a balance between safe-haven demand and expectations of easing geopolitical tensions.

“The market’s focus remains on the US–Iran nuclear negotiations in Geneva. The latest rounds of talks have not produced a clear outcome, leaving geopolitical risks present but not escalating. This has kept gold at elevated levels, though it has not yet provided sufficient momentum to establish a sustainable bullish trend,” she added.

From a flow perspective, a notable signal comes from SPDR Gold Trust, which purchased nearly 19 tons over three consecutive sessions. “The swift return of institutional inflows suggests that hedging demand remains intact. This is a key factor supporting gold’s elevated price base, particularly as policy and geopolitical uncertainties have yet to be fully resolved,” added Tran.

However, the main constraint on gold’s upside stems from the interest rate environment.

“US inflation remains above the Federal Reserve’s 2 per cent target, making near-term monetary easing more difficult. As a result, gold may struggle to stage a strong breakout in the short term, even though safe-haven demand persists,” said Tran.

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