Gold prices experienced a significant surge at the opening of the markets on Tuesday, with a notable increase of Dh4.5 per gram. The Dubai Jewellery Group data revealed that 24K gold was trading at Dh288.75 per gram, marking a substantial rise from Dh284.25 per gram at Monday’s market close. Similarly, 22K, 21K, and 18K gold also opened higher at Dh267.5, Dh259.0, and Dh222.0 per gram, respectively.
Internationally, spot gold was trading at $2,385.97 per ounce at 9:45 am UAE time, having earlier reached $2,387.11 per ounce in the morning.
The escalation of tensions in the region, particularly due to Iran’s recent attack on Israel using drones and missiles, has driven investors towards the safe-haven commodity of gold. The World Gold Council highlighted that despite the elevated price, gold is currently perceived to be under-owned. It noted that the current rally is supported by factors such as growing geopolitical risks, steady central bank buying, and resilient demand for jewellery, bars, and coins.
Commenting on the rally, the Council emphasized the role of Risk and Momentum factors, particularly highlighting gold’s implied volatility, which surged during March. This increase in volatility, reminiscent of previous instances in 2022 and 2023, suggests a gold-specific trend rather than a broader market phenomenon.
