Dubai: Gold Prices Stable As Iran-Israel War Keeps Precious Metal High

Gold prices were steady in Dubai on Wednesday morning ahead of the US Federal Reserve meeting, but remain well-supported by the ongoing military conflict in the Middle East.

The 24K variant of the precious metal was trading at Dh409 per gram, slightly up from last night's close.

Meanwhile, 22K, 21K and 18K were selling at Dh378.75, Dh363.25 and Dh311.25 per gram, respectively. Spot gold was trading at $3,394.53 per ounce, up 0.16 per cent.

Wael Makarem, financial markets strategist lead at Exness, said gold prices held steady as investors weighed geopolitical developments against monetary policy expectations.

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“The yellow metal could remain supported by ongoing tensions in the Middle East and continued investor inflows into gold-backed ETFs, which saw a net addition of 21.7 tonnes in the week ending June 13, the highest weekly inflow since early April and the fourth consecutive week of positive flows,” he said.s

“ Geopolitical risks remain elevated. In the Middle East, Israel intensified its strikes on Iranian infrastructure. Meanwhile, in Eastern Europe, the ongoing conflict between Russia and Ukraine continues to weigh on investor sentiment, supporting demand for safe-haven assets such as bullion.”

He added that the attention now turns to the US Federal Reserve's policy decision on Wednesday.

“While the Fed is widely expected to keep rates unchanged, markets are focused on the projections and press conference for any signals regarding the timing and scope of potential rate cuts later this year. Dovish remarks could increase the appeal of non-yielding assets, while a more cautious tone could lift US Treasury yields and weigh on gold prices. Investors also await key US macro data, including retail sales and industrial production, for further insight into the strength of the economy,” said Makarem.

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