Gold prices in the UAE rose sharply on Wednesday morning, surpassing Dh600 per gram as geopolitical tensions between the United States and Iran drove investors toward safe-haven assets. The 24K gold price jumped to Dh611.75 per gram at the market opening, up Dh32 from Tuesday’s Dh579.75 per gram. Other gold variants also saw significant gains, with 22K reaching Dh566.5, 21K at Dh543.25, 18K at Dh465.5, and 14K trading at Dh363.25 per gram. Spot gold climbed to $5,082.63 per ounce, marking a 3.55 percent increase as of 9:15 am UAE time.
The surge followed an incident on Tuesday evening when a US fighter jet shot down an Iranian drone approaching the USS Abraham Lincoln aircraft carrier in the Arabian Sea. The move heightened geopolitical uncertainty, prompting investors to seek refuge in gold and other safe-haven assets.
The rally on Wednesday partially recovered losses from a dramatic decline earlier this week. Gold prices had fallen 13 percent over two days, representing one of the steepest drops in recent memory. Spot gold had dropped 4.8 percent in the previous session and extended a slump on Friday that marked the sharpest decline in over a decade.
Market analysts said the recent dip was a correction after a record-breaking rally over the past year. “Gold’s three-day plunge was very much a correction waiting to happen, but the fundamental drivers for its multi-year advance still remain strong,” said Vijay Valecha, chief investment officer at Century Financial. He added that ongoing geopolitical tensions and the unlikely prospect of a rapid global monetary tightening cycle are expected to support higher precious metal prices.
The volatility reflects the delicate balance between global economic factors and geopolitical events. While central banks’ policies and inflation trends continue to influence gold, sudden international incidents can quickly reshape investor behavior. Analysts say such events often trigger a rush to gold as a hedge against uncertainty.
Investors and traders in the UAE have closely monitored the developments, with many viewing the recent price surge as an opportunity to secure gains or hedge against potential market instability. The current market conditions highlight gold’s continued role as a safe-haven asset amid geopolitical unrest and ongoing economic uncertainty.
The gold market is expected to remain sensitive to both global political developments and economic policy decisions, with analysts advising caution and close attention to international events.
