Gold prices increased by Dh6.5 per gram in Dubai on Monday morning, reflecting a rise in precious metal prices driven by anticipations surrounding a potential US-Iran peace agreement. The price of 24K gold in Dubai opened at Dh549.75 per gram on Monday, reflecting an increase from the previous week’s closing price of Dh543.25 per gram. The price of 22K gold increased by Dh6 per gram, reaching Dh609.25 per gram. Meanwhile, the prices for 22K, 18K, and 14K gold opened at Dh488.25, Dh418.5, and Dh326.5 per gram, respectively.

Spot gold was trading 0.5 percent higher at $4,565.24 per ounce, while silver gained 1.5 percent to Dh285.86 per ounce. Simon-Peter Massabni noted that gold is presently undergoing one of its most intricate and delicate phases since the year’s outset. This is attributed not only to pronounced price fluctuations but also to the markets’ perception of the precious metal as a direct indicator of geopolitical tensions and global economic instability.

“Gold opening this week with an upward price gap above the $4,550 level clearly reflects that investors are still dealing very cautiously with political developments in the Middle East, particularly the ongoing negotiations between the United States and Iran, which today represent one of the most influential drivers of global risk sentiment, as well as movements in energy, currency, and precious metals markets simultaneously,” he stated. Massabni interprets the bullish price gap as more than a fleeting technical shift or a brief response to political developments; it serves as a definitive signal that markets are proactively adjusting to the future risks linked to the Strait of Hormuz and global supply chains.

Investors fully understand that any prolonged disruption to navigation through this strategic passage would significantly raise global energy costs, directly impacting inflation and economic growth at the same time – a scenario that typically drives capital flows toward gold as the safest haven during periods of instability’, he added.