Gold in Dubai barely moved on Wednesday morning even as the regional security picture deteriorated. Iran launched strikes on US military positions in Bahrain and Kuwait, and the US responded with strikes in southern Iran after commercial shipping was disrupted in the Strait of Hormuz. In a market where geopolitical shocks usually send safe-haven buyers rushing in, the calm reaction says something about where investor attention actually is right now.
| Metal | Price |
|---|---|
| 24K gold Dh | 497 per gram |
| 22K gold Dh | 460.25 per gram |
| 21K gold Dh | 441.25 per gram |
| 18K gold Dh | 378.25 per gram |
| 14K gold Dh | 295 per gram |
| Spot gold | $4,128.86 per ounce, down 0.43% |
| Spot silver | $60.45 per ounce, down about 0.75% |
Rates, Not Just Risk, Are Driving the Price
Carsten Menke, Head of Next Generation Research at Julius Baer, told
Khaleej Times that gold and silver markets are focused on whether the US Federal Reserve will move on interest rates, and that recent gains have been helped along by a weaker-than-expected US labour market report.
His base case is that the Fed holds rates steady, since he views much of the current inflationary pressure as temporary, and he still sees room for the US dollar to weaken further, though by less than previously expected. Record highs remain out of reach for now, in his view, but gold should regain lost ground over the longer term. Silver is a murkier picture, still working through the aftermath of a speculation-driven spike.
When interest rates stay elevated, holding gold, which pays no yield, becomes less attractive relative to interest-bearing assets. That tug-of-war between safe-haven demand and rate expectations is currently keeping prices range-bound rather than sending them sharply higher.
What to Watch Next
For UAE-based investors and jewellery retailers, the practical signal is that near-term price direction likely hinges more on incoming US labour and inflation data than on the next geopolitical headline. Live UAE gold and forex pricing can be tracked through
Khaleej Times' Gold and Forex tracker, which updates through the trading day.
The broader regional backdrop is still unsettled, and any escalation around the Strait of Hormuz carries the potential to shift sentiment quickly. Businesses exposed to gold pricing, from jewellers to trade financiers, should treat the current calm as conditional rather than settled.
