Gold price jumped nearly Dh2 per gram at the opening of the markets in UAE on Monday as investors rushed to safe-haven metal after the Iran-Israel military conflict.
24K was trading at Dh285.5 per gram on Monday morning, up Dh1.75 per gram from last week’s closing price of Dh283.75, according to Dubai Jewelery Group data. Among other stocks, 22,000 traded at Dh264.25, 21,000 at Dh256.0 and 18,000 at Dh219.25 per gram. Globally, spot gold rose 0.5% to trade at $2,356.3 an ounce, investors said.
Iran launched an attack on Israel early Sunday morning with 300 drones and missiles, encouraging investors to invest in safe assets and buy safe metals.
Diego Colman, Contributing Strategist at DailyFX
The yellow metal has risen in seven of the past eight weeks and is up more than 17% since mid-February, weathering the extremely overbought situation unscathed. , he said.
He added that precious metals rose amid solid economic activity despite a strong dollar and a hawkish reassessment of US interest rate expectations. “The typical negative relationship between gold and U.S. real yields has broken down, creating a challenge for fundamental traders,” Colman said.
“Tensions in the Middle East continue to push gold prices higher, but these risks have only recently increased and have not been a dominant theme for some time,” Coleman added.