Dubai gold prices hold firm amid Iran-Israel tensions, dollar gains
UAE promotions and raffles boost jewellery sales despite volatility
DUBAI: Gold prices in Dubai held their ground on Monday despite rising geopolitical tensions, as 24-carat gold was priced at Dh404.25 per gram.
The 22-carat rate stood at Dh374.25, while 21-carat and 18-carat prices dipped to Dh359 and Dh307.5 respectively.
Globally, spot gold fell 0.57% to $3,354.49 an ounce, registering a weekly drop of over 2.2%.
US joins Iran-Israel conflict
The latest price movements follow the United States’ bombing of key Iranian nuclear facilities over the weekend, intensifying the Iran-Israel conflict. Traditionally, geopolitical unrest pushes gold prices up, yet this time, the market responded differently. Investors turned to the dollar, causing a modest uptick in its value and dragging gold slightly lower.
The Dubai 22K rate remains at Dh376, resisting a move back to Dh380 despite the rising tensions.
Oil prices briefly hit five-month highs, and Asian shares slipped, but gold remained relatively muted.
Shopping trends rise
In the UAE, jewellery retailers are offering aggressive promotions and discounts, further supported by the ongoing Dubai Summer Surprises (DSS) raffles. Many shoppers are using this opportunity to buy ahead of potential price hikes. While investor sentiment is cautious, some are considering locking in profits, while others are choosing to hold, anticipating future gains if the conflict escalates further.
Dollar, Fed, and other precious metals
A strong US dollar, which gained 0.2% against major currencies, and the Federal Reserve’s recent report signalling persistent inflation have contributed to the pressure on gold.
US gold futures slid to $3,370.92.
Other metals saw mixed movements – spot silver edged up 0.2% to $36.07, platinum rose 0.1% to $1,269.17, and palladium gained 0.2% to $1,046.62.