Dubai: Gold prices in Dubai climbed again on Friday morning, with 24-karat gold returning above Dh500 after two days of gains in the international market. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)At 9:52 am, the 24-karat variety stood at Dh503.50 per gram, compared with Dh494.75 on Thursday. The 22-karat variety rose to Dh466.25 per gram, up from Dh458 a day earlier.The latest move puts Dubai gold prices back near the levels seen in the third week of June, though they remain well below the early-June peak. The 24-karat rate had climbed as high as Dh538.50 on June 4 before easing through the month, while the 22-karat variety had reached Dh498.50 on the same day.Prices stayed elevated in the first half of June, with 24-karat gold holding above Dh520 for several sessions between June 5 and June 16. The market then cooled, slipping below Dh500 on June 23 and falling to Dh485.25 by June 30, before recovering in the first three days of July.Why gold is risingGold extended two days of gains after weak US jobs data reduced expectations that the Federal Reserve would raise interest rates this year to tackle inflation.Bullion rose as much as 1.8% to around $4,195 an ounce after gaining 2.3% in the previous session, its biggest increase in three weeks. The latest US labour market data showed hiring slowed in June, adding to signs that the economy is facing pressure despite recent pockets of resilience.Softer jobs numbers are likely to reduce pressure on the Fed to raise rates at its July meeting. Higher borrowing costs usually weigh on gold because the metal does not pay interest.Investors have also cut back bets on another US rate hike. Swap markets are now pricing in an 18% chance of a move at the next Fed meeting, down from about a third earlier this week.Oil prices easeOil prices, which have been a key driver of inflation in recent months, have also fallen closer to pre-war levels as tanker flows through the Strait of Hormuz improve.Prices have eased this week after positive discussions in Qatar between the US and Iran over turning their interim 60-day truce into a lasting peace agreement. Lower oil prices could reduce inflation pressure, giving the Fed more room to hold rates steady.Fed concerns support goldFresh concerns over the independence of the US Federal Reserve have also supported gold demand.A push by President Donald Trump to reshape the Fed has revived the debasement trade that helped drive gold to a record high in January. Trump and his allies are looking at ways to remove members of the Fed’s Board of Governors to make room for his own picks, according to people familiar with the matter.Trump told CNBC on Thursday that he plans to keep seeking the removal of Fed Governor Lisa Cook after a Supreme Court decision allowed her to remain in her post while she challenges the administration’s attempt to oust her.- With inputs from Bloomberg. Nivetha Dayanand is Assistant Business Editor at Gulf News, where she spends her days unpacking money, markets, aviation, and the big shifts shaping life in the Gulf. Before returning to Gulf News, she launched Finance Middle East, complete with a podcast and video series.