Dubai gold prices climbed sharply in early trade on Tuesday. Gold safe haven demand pushed rates closer to Dh650 per gram. Investors reacted quickly to rising geopolitical tensions across the Middle East.
Traders in the UAE followed gains in global bullion markets. Prices jumped more than Dh5 per gram at the opening bell. The rally came after fresh military developments involving the US, Israel, and Iran. As uncertainty grew, buyers increased their exposure to precious metals.
According to data from the Dubai Jewellery Group, 24K gold traded at Dh646.5 per gram. The previous close on Monday stood at Dh641 per gram. That increase brought the price within reach of the Dh650 milestone.
Other categories also recorded steady gains during the session. 22K gold traded at Dh598.75 per gram, while 21K gold reached Dh574.00 per gram. Meanwhile, 18K gold stood at Dh492.00 per gram, and 14K gold touched Dh383.75 per gram.
Earlier, prices softened slightly on Monday evening. However, buyers returned when markets reopened on Tuesday morning. That renewed momentum reinforced the Gold safe haven narrative in regional markets.
Globally, spot gold traded at $5,361.19 per ounce, marking a 1.23 percent gain by 9:10 am UAE time. Investors continued shifting funds into defensive assets as tensions persisted. At the same time, silver advanced 1.65 percent to $90.11 per ounce, reflecting broader strength in precious metals.
Market analysts linked the rally directly to geopolitical risks. Josh Gilbert of eToro said gold remains the primary refuge during crises. He explained that investors typically seek stability when political and military tensions escalate.
Unless leaders achieve meaningful de-escalation, demand could remain elevated. Ongoing conflict continues to cloud the global outlook. As a result, traders prefer traditional stores of value over volatile instruments.
Higher-risk investments, including cryptocurrencies, faced selling pressure. Equities also showed signs of strain in early trade. Investors rotated capital into safer assets instead, strengthening the Gold safe haven trend.
Tim Waterer of KCM Trade noted that uncertainty still surrounds the conflict’s scope and duration. He stressed that open-ended risks continue driving strong inflows into bullion. However, a stronger US dollar limited further upside in gold prices.
At the same time, inflation concerns intensified. Oil price swings and reduced shipping activity through the Strait of Hormuz raised supply chain worries. These developments supported continued demand for gold.
For now, Gold safe haven flows dominate investor sentiment in Dubai and beyond. If tensions persist, prices could test or surpass Dh650 per gram in the coming sessions.
