Gold Prices in UAE Continue to Surge Amidst Middle East Crisis

In a noteworthy turn of events, gold prices continued their ascent on Thursday, largely driven by growing concerns related to the Middle East crisis. The data from the Dubai Jewellery Group revealed a significant increase in the value of various gold grades, setting the stage for a compelling market dynamic.

At the outset of Thursday's trading session, 24K gold surged to Dh 241.0 per gram, marking a remarkable increase of half a dirham per gram compared to the previous day's closing rates. Likewise, 22K, 21K, and 18K gold also experienced a bullish trend, commencing the day with prices of Dh 223.0, Dh 216.0, and Dh185.0 per gram, respectively.

The global spot gold market mirrored this surge, with prices rising by 0.4 percent to reach $1,988.38 per ounce by 9.26 am UAE time. The ongoing Middle East conflict continued to weigh heavily on the minds of investors, driving demand for safe-haven assets like gold. Remarkably, gold held its ground, even in the face of a stronger US dollar and rising bond yields, showcasing its resilience as a valuable investment.

Daniel McCarthy, a strategist at dailyFX, noted the impressive rally in the spot gold price during Thursday's trading session. This upward momentum defied conventional market dynamics, as the US dollar showed strength in other sectors and Treasury yields rebounded following a recent dip. The increased volatility in gold prices hinted at the potential for significant movements in the days to come.

As the day unfolded, investors turned their attention to the eagerly anticipated US GDP numbers for the third quarter, set to be released later in the day. Additionally, the PCE price index, scheduled for release on Friday, held the spotlight as market participants eagerly awaited the Federal Reserve's upcoming rate decision.

Nikos Kavalis, the Managing Director at Metals Focus, emphasized the Federal Reserve's stance on higher interest rates as a strategy to combat inflation. These developments underscore the evolving landscape of the gold market, with global dynamics and central bank decisions playing a pivotal role in shaping its trajectory. Stay tuned for further updates as the situation continues to develop.