Gold Prices Soar Amid Global Tensions
Gold Prices Remain High in Dubai, Global Prices Exceed $2900
Gold prices continue to remain high in Dubai after surpassing $2900 per ounce on international markets. On Thursday morning, the global price of the precious metal was $2920.52 per ounce, marking a 0.64% increase. This trend was also felt in Dubai, where the 24K gold opened at approximately 351.75 dirhams (Dh) per gram, while the 22K variant started the day at 327.25 dirhams per gram. Other variants, such as 21K and 18K gold, opened at 313.75 and 269 dirhams per gram, respectively.
What is driving the gold price?
According to the CEO of SHR Capital, several factors underlie the rise in gold prices. Firstly, the investors' growing demand for safe investments, which was triggered by U.S. President Donald Trump's aggressive tariff announcements. The possibility of further trade restrictions heightened concerns about a trade war, further boosting gold's appeal as a secure investment asset.
He emphasized that the positive outlook for gold is further strengthened by the loose monetary policies pursued by the world's leading central banks and their ongoing gold purchases. These factors collectively ensure that gold remains attractive to investors.
Impact of Geopolitical Tensions
Gold prices are also affected by geopolitical tensions. Alremeithi elaborated that the Israeli government's warning to terminate the Gaza ceasefire created additional uncertainty in the region, contributing to the increasing demand for gold. Uncertain geopolitical situations have always increased investors' inclination to seek refuge, and gold is traditionally considered one of the safest investment options under such circumstances.
Role of Central Banks
The role of central banks is also significant in the dynamics of the gold market. The world's leading financial institutions continuously buy gold to diversify their reserves and mitigate currency market risks. This process provides further support to gold prices, especially if the dollar or other major currencies weaken.
Summary
Gold prices remain high both in Dubai and global markets. Increasing geopolitical tensions, concerns over trade wars, and the active gold purchasing strategies of central banks all contribute to keeping the precious metal attractive to investors. Gold traditionally serves as a safe haven in uncertain economic and political environments, and all signs indicate that this trend will continue for some time.
