Gold prices in the UAE saw a two-dirham per gram increase at the market opening on Tuesday, driven by investors seeking safe-haven assets amidst escalating tensions in the Middle East. Analysts anticipate that gold may continue to climb if the Israel-Palestine conflict persists. According to data from the Dubai Jewellery Group, 24K gold was trading at Dh225.5 per gram, while 22K, 21K, and 18K were at Dh208.75, Dh202.0, and Dh173.25 per gram, respectively.
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The spot gold price also experienced a modest 0.1 percent gain, reaching $1,862.80 per ounce. Investors are gravitating towards safe-haven assets like gold as geopolitical tensions rise in the Middle East. Wael Makarem, senior market strategist for Mena at Exness, noted that if tensions persist, safe-haven assets, including gold, may become more attractive, potentially resulting in increased inflows. However, Makarem also cautioned that gold prices could face pressure due to elevated interest rates and bond yields, which continue to weigh on monetary policy.
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Vijay Valecha, chief investment officer at Century Financial, pointed out that the Middle East tensions led to a bullish gap in gold prices at the beginning of the week. However, renewed US dollar buying activity has limited further gains in the gold price. Traders are closely monitoring the release of the FOMC meeting minutes and US consumer inflation figures scheduled for this week, which could influence gold’s trajectory.
