Gold silver demand in Dubai surged on Thursday as investors sought safety amid growing geopolitical tensions. The Middle East conflict involving the US, Israel, and Iran has entered its sixth day, intensifying investor caution. Meanwhile, tensions in Eastern Europe continue to add uncertainty to global markets.
Spot gold traded at $5,174.17 per ounce, marking a one percent increase from the previous day. Silver climbed 1.85 percent to $84.6 per ounce, or Dh310.7, reflecting strong interest in safe-haven metals. Analysts said prolonged military conflicts and geopolitical instability continue to reinforce investor preference for gold and silver.
In Dubai, the 24K gold price opened at Dh623.25 per gram, up from Dh619.25 the previous night. Similarly, prices of 22K, 21K, 18K, and 14K gold rose to Dh577.0, Dh553.25, Dh474.25, and Dh370.0 per gram, respectively, according to local jewellery data. These increases show consistent regional demand for precious metals during times of uncertainty.
Investors remain cautious as oil prices rise due to heightened risks around the Strait of Hormuz. Higher crude prices could lead to increased inflation worldwide, further encouraging safe-haven purchases. Analysts warn that ongoing conflicts may sustain these trends for the foreseeable future.
Joseph Dahrieh, managing director at Tickmill, noted that investors closely monitor evolving geopolitical developments. He said tensions in both the Middle East and Eastern Europe continue to drive gold silver demand. Additionally, market participants are watching upcoming US economic data, including services activity and labor market indicators. These figures could influence expectations for Federal Reserve monetary policy and create new volatility in gold and silver markets.
Dahrieh added that stronger-than-expected US economic data could put downward pressure on gold prices, while softer figures could push markets higher. In the meantime, investors continue to rely on gold and silver as a hedge against uncertainty.
Overall, the combination of Middle East conflict, Eastern Europe tensions, and rising oil prices is sustaining high gold silver demand in Dubai. Analysts expect continued interest in safe-haven assets until global markets stabilize.
