Gold prices in Dubai jumped sharply on Monday morning, with 24K gold rising Dh6.5 per gram as investors reacted to geopolitical tensions and uncertainty surrounding ongoing US-Iran negotiations.
The price of 24K gold opened at Dh549.75 per gram, up from Dh543.25 at last week’s close. Meanwhile, 22K gold climbed Dh6 to Dh509.25 per gram, while 21K, 18K and 14K were trading at Dh488.25, Dh418.5 and Dh326.5 per gram respectively.
In global markets, spot gold gained 0.5 per cent to $4,565.24 per ounce, while silver rose 1.5 per cent to $285.86 per ounce.
Simon-Peter Massabni, head of business development at xs.com, said investors continue to treat gold as a safe-haven asset amid geopolitical uncertainty in the Middle East.
He noted that the rise above the $4,550 level reflected cautious market sentiment over ongoing negotiations between the United States and Iran, which are influencing global energy, currency and precious metals markets.
Massabni added that investors are increasingly pricing in risks linked to the Strait of Hormuz and global supply chains, warning that any prolonged disruption could push up energy costs, fuel inflation and slow economic growth, boosting demand for gold.