International gold prices have shot up by $112.5 an ounce in the last 30 days. Image Credit: Reuters

Dubai: Gold prices shot past the $1,600 an ounce barrier early on Wednesday (January 8) after reports emerged of Iran firing missiles at military bases in Baghdad hosting US forces. It had gone up as high as $1,611, but after the initial spike, it is now trading at $1,586-$1,590 range, and liable to make a jump at the next provocative action in the region.

Despite the volatility, Dubai gold rates remained unchanged at Dh178.25 a gram for Wednesday. “Usually, for each $10 rise in international gold prices (on an ounce basis), there will be a Dh1 per gram increase,” said Cyriac Varghese, General Manager at Sky Jewellery. “If the $1,600 mark is breached again and the level holds, then Dubai shoppers are looking at something above Dh180 a gram.”

On Tuesday, the 22K rate was Dh178.25, after gold prices felt the pressure of rising Middle East tensions since Friday last. After a steady start to gold buying in the first week of DSF 2020, dominated by tourists, demand has dropped significantly in the second week. With prices this volatile, it makes sense for shoppers to try and wait it out.

But for the brave shopper intent on picking up gold come what may, his or her chances of winning some of the raffle prizes increase further. Jewellery retailers hope there will be quite a few of them around in the coming days.