Gold prices rise sharply in Dubai on Monday as investors reacted to the ongoing U.S.-Iran military conflict. Investors increasingly turned to gold, a traditional safe-haven asset, amid heightened global uncertainty. Geopolitical concerns and economic instability across the Middle East drove strong market demand, showing why gold prices rise.
The Dubai Jewellery Group reported 24K gold trading at Dh645.25 per gram at Monday’s market opening. This price represents an increase from Dh636.0 at the weekend close. In addition, 22K, 21K, 18K, and 14K gold gained value, reaching Dh597.5, Dh573.0, Dh491.0, and Dh383.0 per gram, respectively.
Spot gold climbed internationally, trading at $5,353.8 per ounce at 9:10 am UAE time, up 1.43 percent. Meanwhile, silver traded at Dh344.13 per ounce, giving up some early gains. Such movements highlight investors’ preference for gold as a secure asset during volatile times.
Analysts explained that gold prices rise in response to heightened political uncertainty. Ross Norman, an independent market analyst, noted that gold reflects global anxiety, and the ongoing conflict will likely push prices to new record highs. Investors increasingly view gold as a reliable hedge against instability.
Rania Gule, senior market analyst for Mena at xs.com, added that gold should maintain strong support while political tensions remain unresolved. She emphasized that prices could test record highs if the situation evolves into a prolonged conflict.
Rising energy costs also provide additional support for gold. Higher oil and gas prices may complicate monetary policy decisions, further driving investors toward precious metals. Consequently, gold prices rise as traders balance regional risks against global economic pressures.
Overall, markets show that gold continues to attract investors seeking security. Traders are closely monitoring developments in the Gulf, ready to respond to sudden changes. As tensions escalate, gold prices rise further, demonstrating its role as a global safe-haven asset.
Authorities and analysts urge investors to follow market updates closely and remain cautious amid ongoing volatility. The coming days will reveal whether gold maintains its upward trajectory or experiences temporary corrections.
