Gold prices in Dubai surged sharply this week, rising more than Dh13 per gram in just 24 hours amid geopolitical tensions that rattled global markets.
The rally followed comments from US President Donald Trump indicating he was considering military action against Iran after ordering a significant naval buildup in the Middle East.
Weekly Surge Across UAE Gold Rates
Gold opened the week at Dh599.75 per gram on Monday and closed Friday at Dh615.25 per gram, marking a weekly gain of Dh15.5 per gram.
Other categories also ended higher:
- 22K: Dh569.75 per gram
- 21K: Dh546.25 per gram
- 18K: Dh468.25 per gram
- 14K: Dh365.25 per gram
The jump mirrors global price action. International gold prices climbed 2.57 percent on Friday to $5,106.68 per ounce as investors moved toward safe-haven assets.
Safe-Haven Demand Returns
Geopolitical uncertainty remains the primary driver. Rising Middle East tensions have renewed demand for gold as a protective asset.
Ahmad Assiri, research strategist at Pepperstone, said gold is currently reacting to both macroeconomic signals and technical price structures.
He noted that the $6,100 per ounce level now acts as a technical ceiling after multiple recent tests. Previous rallies toward $5,750 followed by pullbacks have reduced short-term momentum, creating a narrower ascending channel.
The current movement suggests the rally may continue, though at a slower and more measured pace rather than sharp acceleration.
Federal Reserve Policy in Focus
Beyond geopolitics, investors are reassessing expectations around US Federal Reserve policy. Rate outlook adjustments typically influence gold’s trajectory, as lower rate expectations tend to support non-yielding assets like gold.
Structural drivers remain intact. These include sustained central bank purchases and elevated global debt levels, though some of that impact has moderated.
For now, analysts suggest gold is likely to trade within a controlled upward channel unless a decisive breakout above $6,100 occurs. Volatility may ease, but safe-haven positioning remains firmly in place.
