Safe-haven demand remains elevated amid trade wars and Middle East tensions, even as bulls take a breather in Thursday trading.
Dubai: Gold prices experienced a slight pullback on Thursday, slipping from recent highs as investors locked in profits, though the downside remains limited by persistent global uncertainties. The dip comes despite a resounding vote of confidence from JP Morgan, which has raised its long-term forecast for the yellow metal.
In the local market, the price of 24K gold opened at Dh625.75 per gram on Thursday morning, a decline from Dh628.25 recorded on Wednesday evening. Other variants followed suit, with 22K, 21K, and 18K trading at Dh579.25, Dh555.50, and Dh476.25 per gram, respectively.
Globally, spot gold ticked down 0.17 per cent to $5,198.52 per ounce, while silver saw a sharper decline of 1.2 per cent, trading at Dh330.25 per ounce.
Bank Forecasts Signal Strong Future Demand
The minor correction does little to alter the bullish structural outlook for gold. In a note released Wednesday, JP Morgan raised its long-term price forecast for gold to $4,500 per ounce, while maintaining its aggressive year-end 2026 target of $6,300 per ounce.
The US bank cited a “continued structural diversification trend” away from traditional reserves and into gold, suggesting that the current macroeconomic environment will continue to drive investment flows into the metal.
Geopolitical Jitters Provide a Floor
According to market analysts, the recent uptick in prices—and the resilience against steeper losses—is largely due to a deteriorating geopolitical landscape.
Tony Sage, CEO of Critical Metals, noted that gold managed to recover some ground mid-week, fueled by safe-haven demand. “A new 10 per cent global tariff introduced by the US administration has come into effect this week, with indications that the rate could be lifted further,” Sage said. “This could reignite trade frictions and unsettle global supply chains, which could drive investors to hedge with precious metals.”
Markets are also closely watching the resumption of nuclear discussions between Washington and Tehran. While Iranian officials have signaled a willingness to negotiate, analysts warn that the path toward a definitive agreement is fraught with obstacles. A breakdown in talks could trigger a significant flight to safety.
Adding to the complex risk landscape, Sage pointed to ongoing hostilities in Eastern Europe and growing instability in Mexico, which together “add another layer of fragility to the global landscape,” reinforcing gold’s status as a primary hedge.
