Israel-Iran crisis: Dubai gold rate steady as shoppers worry about jump back to Dh380

Dubai: The Dubai gold rate remains steady for now at Dh376 a gram for 22K - and not what shoppers and jewellery retailers had been expecting after the US strikes on Iran’s nuclear facilities on Saturday.

The expectations were for the local gold rate to move closer to Dh380.

But so far, the price is sticking to the level since June 19.  

In fact, in the global markets, gold prices have actually dropped by just over $8 to $3,362 an ounce in the first trading hours of the new week. Now, everything could change in hours/days given the extra layer of tensions that’s swirling through the Middle East.

“In the past and during similar crisis such as the start of the Russia-Ukraine war, gold prices went in for an immediate rise,” said a gold retailer. “Same was the case after the US decision to hike tariffs on imports in April. Gold prices are still reflecting those tensions.”

The UAE gold and jewellery market is seeing a flood of new promotions, and soon there will be the DSS gold raffle draws available too for shoppers. Any savings on making charges or through discounts can help shoppers get a few dirhams off from the actual price of gold they are paying for.

As for gold investors, now's the time to see if they should be taking some profits - if prices are to go up from current levels. Otherwise, it's a good time to hold on, analysts say.

"$3,400 is the obvious upside level that participants will look to, more from a psychological perspective than anything else," said Michael Brown, Senior Research Strategist at Pepperstone.

"There’s some technical resistance around $3,450 but that counts for little in markets that have latched onto a theme like geopolitics. So, a convincing break to $3,400 probably puts new highs on the cards.

"(On the down movement) support should come around $3,300 - I’d be a dip buyer as well."