Gold prices jump Dh4.5 per gram in early trade in Dubai

gold prices

In the realm of investment, few assets hold the allure and stability of gold. Its timeless appeal has transcended generations, serving as a safe haven in times of uncertainty and upheaval. Such is the case as geopolitical tensions ripple across the globe, prompting a surge in gold prices.

As the dawn breaks over the bustling markets of Dubai, traders and investors are met with a notable shift in the landscape. Gold prices have leaped by Dh4.5 per gram at the market's opening, signaling a robust start to the day. This upward trajectory stems from mounting geopolitical concerns, casting a shadow of uncertainty over global affairs.

According to data from the Dubai Jewellery Group, the coveted 24K gold is now trading at Dh288.75 per gram, a marked increase from its previous standing at Dh284.25 per gram. This surge is mirrored across various gold grades, with 22K, 21K, and 18K also witnessing significant upticks in value.

Meanwhile, on the international stage, the spot gold market reflects a similar sentiment of fervor. At 9:45 AM UAE time, spot gold commands a price of $2,385.97 per ounce, reinforcing the bullish momentum sweeping through the precious metal market. Earlier in the morning, spot gold reached $2,387.11 per ounce, underscoring its resilience and attractiveness to investors seeking refuge from geopolitical turmoil.

The recent escalation of tensions, triggered by Iran's brazen attack on Israel with 300 drones and missiles, has served as a catalyst for gold's ascent. In times of geopolitical unrest, investors instinctively turn to gold, drawn by its intrinsic value and status as a safe-haven asset. This flight to safety has injected vigor into the gold market, propelling prices to new heights.

Commentary from the World Gold Council sheds light on the underlying factors fueling gold's rally. Despite its lofty price tag, gold remains under-owned, indicating ample room for further appreciation. The Council points to a confluence of factors, including escalating geopolitical risks, sustained central bank buying, and robust demand for gold in various forms, such as jewellery and bars.

The Council's Gold Return Attribution Model (GRAM) offers insights into the drivers behind gold's recent surge. Risk and Momentum factors have played a pivotal role, with gold's implied volatility emerging as a key influencer. Unlike previous rallies, this surge is characterized by a gold-specific impetus, distinct from fluctuations in bond markets.

As investors navigate the turbulent waters of global uncertainty, gold stands as a beacon of stability and resilience. Its enduring allure transcends borders and ideologies, offering a tangible hedge against the unpredictability of geopolitics. In the corridors of power and the trading floors alike, gold reigns supreme, embodying the timeless appeal of wealth and security.