UAE: Gold prices jump Dh2 in Dubai after Israel-Palestine conflict flare-up

Gold prices jumped by two dirhams per gram at the opening of the markets on Monday as investors rushed to safe-haven commodity after the Middle East crisis.

The Dubai Jewellery Group data showed 24K trading at Dh224.0 per gram on Monday morning, up Dh2 per gram from last week’s close. Similarly, 22K, 21K and 18K also opened higher at Dh207.5, Dh200.75 and Dh172.25 per gram, respectively. Spot gold jumped 0.17 per cent to $1,851.13 per ounce by 9.05 am UAE time.

“Gold has regained its safe-haven status following the geopolitical events over the weekend," said Matt Simpson, senior analyst at City Index.

"We see the potential for gold to head for $1,880, but unless we see bond yields move materially lower, I doubt it can break $1,900 any time soon,” he said.

Israel pounded Gaza on Sunday, killing hundreds of people in retaliation for one of the attacks by Hamas on the previous day. More than 1,100 people have died in the conflict so far. The violence fuelled volatility in global markets on Monday.

But the precious metal’s gains were capped by strong US economic data that has bolstered the view that the Federal Reserve is unlikely to end its monetary policy tightening cycle in the near term.

Data last week showed US employment increased by the most in eight months in September, pointing to persistent labour market strength.

ALSO READ:

• Opec+ decision to keep output cuts expected to reignite crude rally

• World Bank revises UAE's 2023 and 2024 growth forecast upward

• Business
• UAE