UAE: Gold prices inch up in early trade as Middle East conflict heightens

Gold prices inched up in the UAE at the opening of the markets on Tuesday, according to Dubai Jewellery Group data.

As of 9 am local time, 24K was trading at Dh239.25 per gram as compared to last night’s close of Dh239.0 per gram. While 22K, 21K and 18K were trading at Dh221.5, Dh214.5 and Dh184.0 per gram, respectively.

Globally, spot gold was up 0.13 per cent at $1,976.27 as of 9.30 UAE time as investors awaited economic data for guidance on interest rates and monitored growing tensions in the Middle East.

Ole Hansen, head of commodity strategy at Saxo Bank, said while the response in the energy market to the Israel-Hamas war so far has been muted given the difficulty in pricing the risk of an actual supply disruption, the gold market has been on a tear, surging by around $160 during the past two weeks.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

“This highlights a market where traders and investors are growing increasingly concerned, not only about the geopolitical landscape, but also about US fiscal policy, and whether the recent jump in both real and nominal yields will break ‘something',” he said.

Gold’s 160-dollar rally during the past two weeks has seen it slice through several resistance levels, and in the process reached a 13-week high within striking distance of the psychologically important $2,000 level.

• Why and how can you invest in the UAE stock markets