Gold Prices Continue To Trade Above Dh600 Due To Geopolitical Tensions

(MENAFN- Khaleej Times)

US President Donald Trump has asked Iran to make a deal over its nuclear programme, or 'really bad things' will happen, setting a deadline of 10 to 15 days

• PUBLISHED: Fri 20 Feb 2026, 10:13 AM

• By:
• Waheed Abbas

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Gold prices stayed steady as Dubai markets opened Friday, with geopolitical tensions keeping the precious metal above $5,000 per ounce.

According to Dubai Jewellery Group data, the 24K gold price was trading at Dh602.50 per gram on Friday morning, while 22K, 21K, 18K, and 14K were selling at Dh558.00, Dh535.00, Dh458.50, and Dh357.75 per gram, respectively.

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Globally, the precious metal was trading at $5,007.75 per ounce, up 0.59 per cent.

Abdelaziz Albogdady, market research and fintech strategy manager at FXEM, said gold advanced as renewed geopolitical strains reinforced demand for safe-haven assets.

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“Despite ongoing diplomatic efforts, tensions in both the Middle East and Eastern Europe have intensified, casting doubt on the viability of current peace talks. This persistent fragility continues to embed a geopolitical risk premium into global markets, underpinning bullion's appeal. At the same time, demand for gold remains strong as central bank accumulation continues and ETF inflows return, even at elevated price levels. Thinner liquidity conditions during the Lunar New Year holiday in China, may also amplify price swings,” he said.

US President Donald Trump on Thursday warned Iran that it must make a deal over its nuclear programme or "really bad things" would happen, and set a deadline of 10-15 days, drawing a threat from Tehran to retaliate against US bases in the region if attacked.

Amid a massive US military buildup in the Middle East that has fuelled fears of a wider war, Trump said negotiations with Iran to end the tense standoff were going well but demanded that Tehran reach a "meaningful" agreement.

However, Albogdady said further upside could be tempered by uncertainty surrounding US monetary policy.

“The latest Federal Reserve minutes revealed a divided committee, with some officials open to the possibility of a return to policy tightening if necessary, while others signalled readiness to ease if conditions deteriorate. Upcoming US inflation data, particularly Friday's PCE release, will be pivotal. Evidence of continued disinflation could reinforce expectations of interest rate cuts, while sticky inflation may inject fresh volatility into the metal's trajectory and fuel downside risks,” added Albogdady.

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