Israel attacks Iran: Dubai gold rate surges back to highest ever - will it go even higher?

Dubai: The Dubai gold rate has shot back to its highest level of Dh381.75 for a gram of 22K as Israel's strikes on Iran's nuclear facilities roiled global commodity markets. The local price is up yesterday's close of Dh378.5 and with every chance of shooting further.

The rate for a gram of 24K is Dh412.50.

In the global markets, bullion prices have put on over $100 to $3,429 an ounce in the last few hours, and with analysts suggesting it looks as if the 'safe haven' asset could make a break for $3,500 levels.

This is the peak gold rate to date, and was reached for a brief period in April when the global markets were worried about US President Trump's unprecedented tariff rollout. At that time, the Dubai gold rate had touched Dh388, but for a limited time.

The Dh381.75 remains the highest official rate for a gram of 22K Dubai gold.

The latest crisis follows within hours of traders and staff at Dubai Gold Souq hearing about the Air India jet's crash after it just took off from Ahmedabad airport in the western Indian state of Gujarat.

"Gujarat is one of the main sources for our diamond jewellery collections," said a wholesaler. "And the number of visitors and shoppers from Ahmedabad and from Gujarat are always among the highest. The plane crash is such a tragedy and we have many staff who hail from Gujarat."

Gold prices will remain volatile on the upside. Best option for shoppers/investors is to sit on the sidelines to see how high the price momentum will reach.

According to analysts, the detail to watch out for is whether the $3,500 mark will be reached. And if it does, how much further can it go in this rush?

"The only gold shopping to do right now is exchange gold jewellery," said a shopper.

Whether that's for new jewellery or straight cash is entirely up to the shopper...