Gold prices rallied on Tuesday morning, surging by two dirhams per gram as the UAE markets opened, driven by increased investor interest in this safe-haven commodity amidst escalating tensions in the Middle East.
Analysts Predict Further Gains:
Analysts expect the price of gold will continue to rise if the Israel-Palestine conflict persists in the coming days, as geopolitical uncertainties continue to weigh on the global financial markets.
According to data provided by the Dubai Jewellery Group, the prices of various gold types in the UAE were as follows on Tuesday at 9 a.m.:
- 24K Gold: Dh225.5 per gram
- 22K Gold: Dh208.75 per gram
- 21K Gold: Dh202.0 per gram
- 18K Gold: Dh173.25 per gram
Spot Gold Prices:
In the international market, spot gold gained 0.1 percent, reaching $1,862.80 per ounce. This increase is attributed to the growing demand for safe-haven assets like gold amid the Middle East tensions.
Wael Makarem, senior market strategist for Mena at Exness, commented: “Gold prices jumped after the eruption in tensions in the Middle East as investors erred to the side of caution in fear of further escalation.
Safe-haven assets, including gold, could become more attractive and see more inflows if tensions do not decrease.
The market could see more volatility as new geopolitical developments emerge. However, gold prices could remain under pressure overall with interest rates and bond yields at elevated levels as monetary policy could remain a major weight.”
Dollar Influence:
Vijay Valecha, chief investment officer at Century Financial, noted, “Escalating geopolitical tensions in the Middle East prompted gold to open with a bullish gap and reach its highest level in over a week at the beginning of the new week.
Nevertheless, renewed US dollar buying activity has limited further upside potential for the gold price.
Traders are now closely monitoring the release of the FOMC meeting minutes and US consumer inflation figures scheduled for this week.”
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