Investors are dealing very cautiously with political developments in the Middle East, which represent one of the most influential drivers of global risk sentiment
Gold prices jumped Dh6.5 per gram in Dubai on Monday morning as precious metal prices rallied on expectations of a US-Iran peace deal.
The 24K gold price in Dubai was trading at Dh549.75 per gram at the market opening on Monday, up from Dh543.25 per gram at the close of the markets last week.
The 22K gold price rose Dh6 per gram to Dh609.25 per gram, while 22K, 18K and 14K opened higher at Dh488.25, Dh418.5 and Dh326.5 per gram, respectively.
Spot gold was trading 0.5 per cent higher at $4,565.24 per ounce, while silver gained 1.5 per cent to Dh285.86 per ounce.
Simon-Peter Massabni, head of business development at xs.com, said gold is currently experiencing one of its most sensitive and complex periods since the beginning of the year, not only because of the strong price movements, but also because markets have started treating the precious metal as a direct reflection of geopolitical anxiety and global economic uncertainty.
“Gold opening this week with an upward price gap above the $4,550 level clearly reflects that investors are still dealing very cautiously with political developments in the Middle East, particularly the ongoing negotiations between the United States and Iran, which today represent one of the most influential drivers of global risk sentiment, as well as movements in energy, currency, and precious metals markets simultaneously,” he said.
Massabni sees the bullish price gap not just as a temporary technical movement or a short-term reaction to political headlines, but as a clear indication that markets have already begun repricing future risks associated with the Strait of Hormuz and global supply chains.
“Investors fully understand that any prolonged disruption to navigation through this strategic passage would significantly raise global energy costs, directly impacting inflation and economic growth at the same time – a scenario that typically drives capital flows toward gold as the safest haven during periods of instability,” he added.
