Bullion rises on volatile oil prices and evolving interest rate expectations.
Dubai: Gold prices in Dubai surged sharply on Tuesday morning, lifting retail rates after several days of volatile trading amid global geopolitical tensions and currency fluctuations.
As of 9:25 a.m., the price of 24K gold in Dubai reached Dh623 per gram, up from Dh615.75 on Monday. Meanwhile, 22K gold rose to Dh576.75 per gram, compared with Dh570 the previous day.
The latest increase brings gold near the upper end of its range over the past month, keeping buyers and investors alert for the market’s next move.
Prices swing through February and March
Gold prices in Dubai have experienced sharp fluctuations through February and early March, reflecting global uncertainty and shifting investor sentiment.
At the start of March, 24K gold was priced at Dh636 per gram on March 1, rising to Dh641 on March 2, marking one of the highest levels recorded during the month. Prices then softened in the first week, falling to Dh614.25 on March 3 and Dh611.50 on March 5, before recovering to Dh620 on March 6.
Gold market remains volatile
Volatility continued over the weekend, with 24K gold prices moving back above Dh623 on March 7 and 8, then dipping to Dh615.75 on March 9, before Tuesday’s surge returned them to Dh623 per gram.
February also saw wide swings. Prices climbed from Dh590.75 on February 17 to Dh607.50 by February 14, before reaching Dh629.50 on February 27 and Dh636 on February 28, highlighting how rapidly the market has been responding to global developments.
The movement in 22K gold mirrored this pattern. Prices ranged from Dh547 in mid-February to Dh589 at the end of the month, before stabilizing in the Dh570–Dh577 range through the first half of March.
Global tensions keep gold volatile
Global market developments continue to influence gold prices, with geopolitical tensions and interest rate expectations at the forefront.
Bullion rose by as much as 0.9%, topping $5,180 an ounce and recovering losses from the previous session. Market sentiment shifted after US President Donald Trump indicated that the conflict in the Middle East could be moving toward a resolution.
Trump said the war could be resolved “very soon,” remarks that sent oil prices sharply lower and caused a slight weakening of the US dollar.
Crude prices dropped more than 10% during volatile trading, reflecting expectations that tensions could ease if diplomatic progress is made.
Markets have been closely monitoring the conflict with Iran, now in its second week, particularly after Iranian missile strikes targeted energy infrastructure, raising concerns about potential disruptions to global oil supply.
Shipping through the Strait of Hormuz—a key energy corridor handling roughly one-fifth of the world’s oil and liquefied natural gas—has been a major focus for traders.
During a news conference in Florida, Trump stated that the US Navy would escort tankers through the Strait of Hormuz, though specific details of the plan were not provided.
Safe-haven demand remains strong
Despite recent sharp swings, gold has delivered robust gains this year.
Prices have risen roughly 20% in 2026, supported by geopolitical tensions, global trade uncertainties, and strong investor demand for safe-haven assets during periods of market stress.
Trading has remained uneven in recent days, as investors weigh safe-haven demand against expectations that higher interest rates could persist. Higher borrowing costs typically weigh on gold, since the metal does not generate interest, making it less attractive when yields on other assets rise.
ETF flows reflect shifting investor sentiment
Exchange-traded fund (ETF) data also highlights changing investor behavior. Total gold holdings in ETFs fell by nearly 30 tonnes last week, marking the largest weekly selloff in more than two years, according to Bloomberg. The decline reflects markets adjusting expectations for central bank rate cuts, which have now been pushed further into the future.
Buyers watch for the next move
Despite global volatility, retail buyers in Dubai continue to track price movements closely, particularly ahead of seasonal demand linked to weddings, travel, and gifting. Short-term swings are expected to persist while geopolitical tensions remain unresolved and markets react to policy signals from major economies.
Tuesday’s jump to Dh623 per gram for 24K gold brings the market back into the upper trading band seen over the past several weeks, leaving consumers watching closely to see whether prices will stabilise or push toward new highs.
