Dubai – Gold prices in Dubai surged to their highest recorded level as renewed geopolitical tensions in the Middle East pushed investors into traditional safe-haven assets. Following Israel’s military strikes on Iran, the Dubai rate for 22-karat gold rose to Dh381.75 per gram, with 24-karat gold climbing to Dh412.50, both approaching all-time highs.
This morning’s jump from Dh378.5 to Dh381.75 for 22K represents the highest official rate recorded in the local market, matching a similar peak seen briefly in April when global markets were unsettled by then-U.S. President Donald Trump’s tariff policy announcements.
In global markets, spot gold prices surged past $3,429 per ounce, rising by over $100 within hours. Analysts suggest the metal may breach the psychological $3,500 level, fueled by fears of escalation in the Israel-Iran confrontation and its impact on broader markets.
“Gold prices are on a tear this morning,” noted one Dubai-based commodities trader. “This is a textbook response to conflict in a critical region, flight to safety.”
A Familiar Safe Haven in Unfamiliar Times
The Israel-Iran conflict, which intensified following strikes on Iranian nuclear facilities, has rattled global markets. The situation has further complicated investor sentiment already wary of inflation, currency volatility, and energy supply disruptions, pushing many to hedge with gold.
Historically, bullion prices spike during periods of uncertainty and conflict. The current trend mirrors earlier surges linked to the Russia-Ukraine war, U.S.-China trade disputes, and global inflation concerns.
“We could see gold cross $3,500 if the geopolitical situation worsens or spreads,” said a regional bullion analyst. “The fact that we are this close already tells you how much fear is being priced in.”
Shopper Sentiment in Dubai
At Dubai’s Gold Souq, the atmosphere is tense yet active. While traders were processing the shocking news of the Air India crash in Ahmedabad, which struck an emotional chord among the city's Indian community, gold prices quietly soared in the background.
One prominent wholesaler told Gulf News,
“Gujarat is not only one of our major diamond sourcing hubs, but also home to many of our staff and customers. The crash was devastating news. But now, market movements are commanding our focus.”
Local shoppers and investors, meanwhile, are showing restraint. Most are adopting a wait-and-watch strategy, avoiding bulk purchases until price momentum stabilizes.
“The only safe shopping right now is gold exchange,” said one shopper. “Upgrading jewellery or converting old items to cash could make more sense than buying fresh stock.”
Jewellery retailers confirm that with prices at historic highs, footfall has slowed, and buyers are waiting to see if the market corrects or escalates further.
What’s Next for Gold?
The direction of gold in the coming days will depend heavily on:
-
Escalation or de-escalation of Israel-Iran hostilities
-
Movements in crude oil prices
-
Investor sentiment in global equity markets
-
Central bank responses and safe-haven demand
If the current geopolitical uncertainty persists and gold crosses the $3,500 threshold, the Dubai rate could edge closer to Dh390 per gram or higher, depending on global premiums and currency exchange impacts.
