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Gold prices up over Dh4 per gram in early trade as Middle East conflict drags on
Rising geopolitical conflict continue to support demand for safe-haven assets, while persistent fiscal deficits in several major economies – most notably the US — remain a long-term concern
- PUBLISHED: Tue 17 Mar 2026, 9:36 AM
[Editor's Note: Follow Khaleej Times live blog amid US-Israel-Iran war for the latest regional developments.]
Gold prices rose Dh4.5 per gram in Dubai on Tuesday morning as investors returned to the safe-haven metal due to concern about the prolonged Middle East conflict.
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The Dubai Jewellery Group data showed the 24K gold price trading at Dh607.0 per gram on Tuesday morning, up from Dh602.5 per gram at the market close on Monday.
The other variants of the precious metal also gained, with 22K, 21K, 18K, and 14K trading higher at Dh562.0, Dh539.0, Dh462.0, and Dh360.25 per gram, respectively.
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Spot gold was trading at $5,041.47 per ounce, up 0.9 per cent at 9.15 am UAE time. Silver was up two per cent at $82 per ounce.
The Middle East military conflict involving the US, Israel and Iran entered its 18th day on Tuesday, keeping oil prices above $100 a barrel and bringing stock markets down.
Ole S. Hansen, head of commodity strategy at Saxo Bank, said the structural reasons behind the strong investor demand for gold in recent years have not disappeared.
“Rising geopolitical tensions continue to support demand for safe-haven assets, while persistent fiscal deficits in several major economies – most notably the US — remain a long-term concern for investors focused on currency stability and purchasing power.
“Central bank demand, which has been a major pillar of the gold market over the past several years, may moderate somewhat as prices rise. With gold’s share of total reserve portfolios increasing relative to traditional assets such as government bonds, some central banks may slow the pace of purchases. However, the broader strategic motivation — diversification away from currencies and geopolitical risk — remains firmly in place,” added Hansen.
Against this backdrop, Saxo Bank maintained a constructive outlook for the precious metals sector.
“While short-term volatility and liquidity-driven selling may continue to produce periods of consolidation, the broader macro environment remains supportive. Continued geopolitical tension, fiscal uncertainty and the risk of a stagflationary backdrop provide a favourable setting for hard assets,” he added.
