Dubai gold surges as global turmoil drives fresh rush into safe havens
Bullion gains momentum amid volatile oil markets and shifting interest rate bets
Dubai: Dubai gold prices jumped sharply on Tuesday morning, pushing retail rates higher after several days of volatile trading driven by global geopolitical developments and currency movements.
The latest rise places gold close to the upper end of the range seen over the past month, keeping buyers and investors closely watching the market for the next move.
Prices swing through February and March
Gold prices in Dubai have seen sharp fluctuations through February and early March, reflecting global uncertainty and shifting investor sentiment.
At the start of March, the 24K rate stood at Dh636 on March 1, before sliding to Dh641 on March 2, one of the highest levels recorded during the month. Prices then softened through the first week, falling to Dh614.25 on March 3 and Dh611.50 on March 5, before recovering again to Dh620 on March 6.
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Volatility continued over the weekend. Rates moved back above Dh623 on March 7 and March 8, then dipped to Dh615.75 on March 9, before Tuesday’s jump pushed prices back to Dh623.
February also saw wide swings. Prices climbed from Dh590.75 on February 17 to Dh607.50 by February 14, before reaching Dh629.50 on February 27 and Dh636 on February 28, showing how rapidly the market has been reacting to global developments.
The movement in 22K gold followed a similar pattern. Prices ranged from Dh547 in mid-February to Dh589 at the end of the month, before settling in the Dh570 to Dh577 range through the first half of March.
Global tensions keep gold volatile
Global market developments continue to shape gold prices, with geopolitical tensions and interest rate expectations playing a central role.
Bullion rose as much as 0.9% to top $5,180 an ounce, recovering losses from the previous trading session. Market sentiment shifted after US President Donald Trump signalled that the conflict in the Middle East could move toward a resolution.
Trump said the war could be resolved “very soon,” comments that pushed oil prices sharply lower and weakened the US dollar slightly.
Crude prices dropped more than 10% during volatile trading, reflecting expectations that tensions could ease if diplomatic progress emerges.
Markets have been closely watching developments surrounding the conflict with Iran, now in its second week, particularly after Iranian missile strikes targeted energy infrastructure and raised concerns about disruption to global oil supply.
Shipping through the Strait of Hormuz, a key energy corridor handling around one fifth of the world’s oil and liquefied natural gas, has been a major point of concern for traders.
During a news conference in Florida, Trump said the US Navy would escort tankers through the Strait of Hormuz, although details of the plan were not provided.
Safe haven demand remains strong
Despite the sharp swings in recent sessions, gold has still delivered strong gains this year.
Prices have risen by around 20% in 2026, supported by geopolitical tensions, global trade uncertainty and investor demand for safer assets during periods of market stress.
Trading has remained uneven in recent days, with investors balancing safe haven demand against expectations that higher interest rates could remain in place longer.
Higher borrowing costs typically weigh on gold because the metal does not generate interest, making it less attractive when yields on other assets rise.
Exchange traded fund flows also show shifting investor sentiment. Total gold holdings in ETFs fell by nearly 30 tonnes last week, marking the biggest weekly selloff in more than two years, according to data compiled by Bloomberg.
The decline reflects markets adjusting expectations for central bank rate cuts, which have been pushed further into the future.
Buyers watch for the next move
Despite global volatility, retail buyers in Dubai continue to track price movements closely, particularly ahead of upcoming seasonal demand linked to weddings, travel and gifting.
Short term swings are likely to continue while geopolitical tensions remain unresolved and markets react to policy signals from major economies.
Tuesday’s rise to Dh623 per gram for 24K gold places the market firmly back in the upper trading band seen over the past several weeks, leaving consumers waiting to see whether prices stabilise or push toward new highs.
- With inputs from Bloomberg.
