Dubai 24K Gold Hits Dh600+ as Investors Flock to Safe Havens on Tension Fears

Dubai: Gold prices surged sharply on Wednesday morning, with 24K crossing the Dh600 per gram mark once again as geopolitical tensions triggered a fresh rush into safe-haven assets.

The price of 24K gold jumped to Dh611.75 per gram at market opening, up from Dh579.75 just a day earlier. The Dh32 increase within 24 hours reflects renewed volatility in global markets.

All Variants Rally

The surge was not limited to 24K. Other categories also recorded strong gains:

22K rose to Dh566.5 per gram
21K climbed to Dh543.25 per gram
18K advanced to Dh465.5 per gram
14K reached Dh363.25 per gram

Internationally, spot gold traded at $5,082.63 per ounce, up 3.55 per cent at 9.15 am UAE time, pushing the metal back above the $5,000 threshold.

Geopolitical Tensions Drive Demand

The spike follows heightened US-Iran tensions after reports that a US fighter jet shot down an Iranian drone approaching the USS Abraham Lincoln aircraft carrier in the Arabian Sea. The development rattled markets and prompted investors to rotate into traditional safe-haven assets.

Gold, historically viewed as a hedge against geopolitical risk and financial instability, quickly regained momentum after a recent sharp correction.

Sharp Rebound After Steep Correction

Earlier this week, gold had experienced one of its steepest pullbacks in more than a decade. Prices dropped 13 per cent over two days after a record-breaking rally, triggering heavy profit-taking.

On Tuesday, spot gold rebounded as much as five per cent after falling 4.8 per cent in the previous session. The move marked a technical correction rather than a shift in long-term fundamentals, analysts said.

Vijay Valecha, Chief Investment Officer at Century Financial, described the recent decline as overdue.

“Gold’s three-day plunge was very much a correction waiting to happen, but the fundamental drivers for its multi-year advance remain strong. Given the unlikelihood of a rapid tightening cycle of monetary policy globally and lingering geopolitical concerns, higher prices for precious metals look likely,” he said.

What It Means for UAE Buyers

For Dubai’s jewellery buyers and investors, the renewed rally signals continued volatility. While retail buyers may hesitate at elevated levels, investors appear to be positioning for prolonged uncertainty.

With global tensions unresolved and central bank policy remaining supportive, the trajectory of Dubai gold prices will likely remain closely tied to geopolitical developments and inflation expectations in the months ahead.

Photo: Shihab