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

Investors rush into gold as the ultimate safe haven asset as Middle East crisis unfolds

Last updated:
Manoj Nair, Business Editor
2 MIN READ
Gold prices are on a tear this morning - will it again shoot to $3,500 an ounce levels?
Gold prices are on a tear this morning - will it again shoot to $3,500 an ounce levels?
Gulf News Archive

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."

What shopper-investors need to do

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...

Manoj Nair
Manoj NairBusiness Editor
Manoj Nair, the Gulf News Business Editor, is an expert on property and gold in the UAE and wider region, and these days he is also keeping an eye on stocks as well. Manoj cares a lot for luxury brands and what make them tick, as well as keep close watch on whatever changes the retail industry goes through, whether on the grand scale or incremental. He’s been with Gulf News for 30 years, having started as a Business Reporter. When not into financial journalism, Manoj prefers to see as much of 1950s-1980s Bollywood movies. He reckons the combo is as exciting as it gets, though many will vehemently disagree.

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