Gold prices in the UAE soared to new heights at the beginning of the week, hitting another record high on Monday morning. According to data from the Dubai Jewellery Group, the 24K variant of gold was trading at Dh283.5 per gram at the market opening, marking an increase of one-and-a-half dirham from the previous week’s close.
Citing a Khaleej Times report, the price surge extended across various gold variants, with 22K opening at Dh262.5 per gram, 21K at Dh254.25, and 18K at Dh217.75 per gram. Notably, the precious metal prices in the UAE have seen a jump of Dh10 per gram since the beginning of the month.
On the global front, gold witnessed a significant rise, up by 1.1 percent to $2,337.09 per ounce at 9:45 am UAE time. Prices surged past $2,350 per ounce during Asian trade on Monday, reflecting a strong demand for safe-haven assets amidst escalating geopolitical tensions.
The tension between Israel and Iran following an attack on an Iranian mission, which reportedly resulted in casualties including a senior commander of the Islamic Revolutionary Guard, has heightened concerns among investors. Nick Cawley, senior strategist at dailyFX, explained, “When geopolitical tensions rise, investors looking to become risk-averse seek the safety of gold.”
Geopolitical uncertainties often lead to economic instability and rising inflation, making gold an attractive option for preserving wealth during times of crisis. The ongoing turmoil in the Middle East, coupled with fears of inflation driven by escalating oil prices, further boosts the allure of gold for investors seeking stability amid uncertain times.