Gold Price Could Jump To Dh650 Per Gram In Dubai Tomorrow Amid US-Iran War

2026-03-01 04:03:15

(MENAFN- Khaleej Times) Gold and silver prices are likely to jump up to five per cent when markets open in Dubai and globally on Monday as demand for safe-haven assets picks up amidst ongoing geopolitical tensions.

Analysts said high oil prices due to the regional military conflict could complicate the US decision on interest rate cuts and this could provide additional support to the precious metal.

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The US and Israel launched attacks against Iran on Saturday, targeting the country's leadership and military installations.

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Following the US-Israel attack, Iran fired missiles and drones at Gulf countries.

“In such environments, gold quickly returns to the forefront as a strategic hedging instrument rather than a speculative asset. Gold prices are likely to post an immediate upside move at the market open, potentially with a price gap and gains ranging between 2 per cent and 3 per cent, driven primarily by institutional hedging flows ahead of retail participation. This behaviour reflects investors' focus on capital preservation rather than the pursuit of short-term gains,” said Rania Gule, senior market analyst for Mena at xs.

In the UAE, 24K gold closed the week at Dh636.0 per gram, while 22K, 21K, 18K and 14K were trading at Dh589.0, Dh564.75, Dh484.0 and Dh377.5 per gram, respectively.

If the yellow metal rises by over two per cent, the 24K gold price could potentially reach Dh650 per gram for the first time when markets open in Dubai and the UAE on Monday.

Globally, spot gold closed the week at $5,278.1 per ounce, up 1.94 per cent.

“In the short term, gold should remain well supported as long as the political landscape remains unclear, with the potential to test record highs should tensions evolve into a prolonged situation. More importantly, this upward move cannot be viewed in isolation from monetary policy considerations; any sustained rise in energy prices could complicate interest rate-cut decisions, providing additional structural support for gold,” added Gule.

Silver

Silver, while benefiting from the broader safe-haven demand, remains more sensitive to volatility due to its dual nature as both a hedge and an industrial metal.

“I expect silver to move at a faster pace than gold, with potential gains in the range of 3 per cent to 5 per cent, although it remains more vulnerable to corrections should geopolitical concerns begin to ease,” added Gule.

Silver closed the week at $93.72 (Dh344.22) per ounce, up 7.59 per cent.

Chris Weston, head of research at Pepperstone, said gold and silver should also show green when markets reopen, and revert to being a default safe-haven position.

“It would not be a surprise to see gold gap around 2 per cent higher,” he said, advising investors to stay open-minded to the idea that the collective market can take prices wherever it wants.

“Things do not always have to make sense by your thinking, and prices can often move far in excess of what appears fair. We are at the mercy of headline risk, and there are participants, including algorithms, that can interpret news and react far quicker than everyone else. This environment may not suit everyone, and if that is the case, it can be advantageous to stay out of the markets most sensitive to the news flow. The idea that no position can sometimes be the best position rings true here,” said the head of research at Pepperstone.