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Gold prices surged by over Dh6 per gram in Dubai on Friday as the US dollar weakened and uncertainty persisted over the Middle East conflict.
The 24K gold price was trading at Dh535.5 per gram at market opening on Friday, up from Dh529.25 per gram at the close of markets on Thursday.
Other variants of the yellow metal also rose, with 22K, 21K, 18K, and 14K trading at Dh495.75, Dh475.25, Dh407.50, and Dh317.75 per gram, respectively.
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Spot gold was trading at $4,445 per ounce, up 1.4 per cent, while silver rose 2.7 per cent to $69.69 per ounce.
Aaron Hill, chief market analyst at FP Markets, said gold, considered a traditional safe haven during times of uncertainty, rose on the back of easing inflation expectations amid falling oil prices.
Samer Hasn, senior market analyst at xs.com, said the protracted conflict in the Middle East has adversely impacted various market channels, complicating gold’s ability to capitalise on the geopolitical risk premium.
He added that a decrease in speculative investment positions in Comex gold futures has made the metal more vulnerable to price declines.
He also noted that there are mixed signals on how the conflict with Iran might develop.
Statements by US President Donald Trump and reports of a 15-point ceasefire proposal offered temporary market relief, while the Pentagon’s deployment of 2,000 additional troops suggests a possible ground offensive and further escalation.
