The Israel-Iran conflict caused gold prices in the United Arab Emirates to decline when markets started Monday morning marginally, but they were still trading at a two-month high. 24K was trading for Dh413.0 per gramme on Monday morning, according to statistics from the Dubai Jewellery Group. This was a decrease from Dh413.5 at the weekend’s market closing.
The prices of the other variations were Dh382.75, Dh367.0, and Dh314.5 per gramme, respectively, for 22K, 21K, and 18K. At $3,418.76 an ounce, spot gold was down 0.43 percent. Increased gold prices may reduce demand for jewellery and gold in the United Arab Emirates before the summer vacation travel season. Demand for jewellery is growing for several jewellers in Dubai as locals take summer holidays to return home. Analysts predict that the geopolitical unrest in the Middle East would keep gold prices high.
The demand for gold in safe havens has been driven by the combined political risk premium that is now increasing as a result of the Iran-Israel dispute. Right now, the short-term upswing is still in place, and we have a clear break over $3,400. With the potential to break a new high above the $3,500 level, we are observing a resistance level at that level,” stated Kelvin Wong, a senior market analyst for Asia Pacific at Oanda.
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