UAE: Gold prices jump over Dh1 per gram as Middle East conflict escalates

Gold prices jumped more than one dirham per gram in the UAE on Wednesday morning due to the escalation of military conflict in the Middle East.

The Dubai Jewellery Group data showed 24K trading at Dh234.75 per gram at the markets' opening on Wednesday compared to last night's close of Dh233.5 per gram. While 22K, 21K and 18K also opened higher at Dh217.25, Dh210.5 and Dh180.25 per gram, respectively. Spot gold rose 0.75 per cent to $1,939.01 per ounce by 9.15 am UAE time.

Deadly blasts in Gaza on Tuesday fuelled concerns among global investors about conflict escalation, pushing them to move to safe-haven assets.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said that no matter how bad the situation gets in the Middle East, the way, and the intensity with which the market perceives the news will gradually decrease, and risk assets like gold and Swiss franc will eventually give back gains.

"But, right now, it is still too early to lower one's guard, as Israel hasn't said its last word yet. The risk of an Israeli offensive remains high, and there is a strong possibility of a sharp decline in appetite if diplomatic efforts fail," he said.

"Safe-haven flows amid geopolitical tensions in the Middle East have remained the dominant catalyst for gold prices. The risks of further escalation in the conflict may be supportive of prices for now, but the $1,945 level may prove to be a crucial resistance to overcome," said Yeap Jun Rong, market strategist at IG.

ALSO READ:

• US retail sales rise solid 0.7% in September

• UAE apex bank unit launches instant digital payments platform

• 'I want to be Dubai': UAE a role model for Eurasian countries, says official

• Business
• UAE