Gold Prices Rise Amid Middle Eastern Conflicts

Gold Prices Surge in Dubai: Near Historic High Amid Middle Eastern Tensions

Gold prices have surged significantly once again in Dubai following a renewed wave of conflict between Israel and Iran, leading global investors to seek safer investment options. On Friday, the price of 24-carat gold increased to 412.75 dirhams per gram, a rise of 4 dirhams compared to the previous day’s closing value, falling just short of this year's record high of 420 dirhams.

What is behind the increase?

The intensification of geopolitical tensions in the Middle East, particularly the Israeli airstrikes, has heightened uncertainty in the global market. In such situations, investors often turn to gold as a safe haven, which inherently boosts its price.

Alongside 24-carat gold, other variations have also seen price increases:

22K: 382.25 dirhams/gram

21K: 366.5 dirhams/gram

18K: 314.0 dirhams/gram

The spot market price of gold worldwide is currently at $3,415.73 per ounce, marking a nearly two-month high, reflecting a daily increase of over 1%.

What impact does this have on residents?

Purchasing gold jewelry is a common practice as the summer season approaches in Dubai, especially among those who travel home and wish to buy gifts for their family members. The current sudden price surge, however, might deter buyers, particularly those who had planned such expenditures at the relatively stable prices of recent months.

Analyst Opinion

Market analysts suggest that geopolitical events may further increase gold prices. A leading financial market analyst stated, "Gold has broken through the $3,400 resistance level following the news of airstrikes, and if the situation escalates further, we can expect the price to rise even more."

Summary

Gold has once again come into focus in Dubai, not only as an investment but as a key element in gift purchasing too. Given the current events, prices may rise further in the coming days, so those contemplating purchases should closely monitor market movements.

(The article source is based on Forex trading.)