UAE Gold Climbs to Multi-Week Highs Amid Rising Safe-Haven Demand from Regional Tensions.
Dubai: Gold prices in the UAE surged on Monday morning, continuing their recent rally as investors flocked to safe-haven assets amid escalating conflict in the Middle East. The 24-karat gold rate rose to Dh646.45 per gram at 8:43 am on March 2, up from Dh636 a day earlier, while 22-karat gold climbed to Dh592.58, compared with Dh589 previously.
Sharp Single-Day Gains
The latest surge marked one of the strongest single-day increases in recent weeks, pushing local bullion prices back toward levels last seen during previous periods of geopolitical tension. The move reflects a renewed wave of risk aversion among investors and buyers.
Steady Climb Through February
Gold’s rise has been building momentum for weeks, driven by global economic uncertainty, strong central bank demand, and shifting investment flows. Local price trends underscore how steadily the rally gathered pace throughout February.
At the start of February, 24-karat gold traded near Dh564 per gram. Prices climbed steadily throughout the month, surpassing Dh600 by mid-February before accelerating sharply in the final week. By February 27, the rate had reached Dh629.50, and within days it surged above Dh646.
The trend highlights how gold’s trajectory has been influenced by a combination of long-term structural demand and short-term geopolitical shocks, with the latest escalation serving as a catalyst rather than the sole driver of the rally.
War Tensions Trigger Global Surge
Monday’s sharp spike in gold prices was driven by a deterioration in regional stability over the weekend. Military strikes and retaliatory attacks involving multiple countries intensified fears of a wider conflict, prompting investors to seek traditional safe-haven assets.
Global bullion prices jumped over 2% in early trading before moderating later in the session, as investors quickly shifted funds from equities and currencies into gold, which historically performs well during periods of uncertainty.
Energy markets reflected similar concerns. Oil prices surged at the open, driven by worries over potential supply disruptions, particularly near the Strait of Hormuz, one of the world’s key energy corridors. The concurrent rise in oil and gold added to systemic risk across global markets.
Structural Drivers Remain Intact
Even prior to the latest conflict, gold had been on a sustained upward trajectory in 2026. The metal has gained roughly 25% this year, supported by strong central bank purchases, continued diversification away from sovereign bonds, and persistent investor demand for inflation protection.
The broader macroeconomic environment has also supported gold’s strength. Elevated global political tensions, volatile trade relations, and repeated bouts of financial market uncertainty have all favored safe-haven assets.
Central banks have played a key role, with continued accumulation of gold reserves providing a stable foundation for prices and limiting downside risk during periods of temporary corrections.
Market Outlook
In the short term, gold’s trajectory will largely hinge on geopolitical developments. Continued escalation is likely to support prices at elevated levels, while signs of de-escalation could prompt profit-taking and temporary pullbacks.
Longer-Term Fundamentals Remain Supportive
Despite near-term volatility, gold’s longer-term outlook remains positive. Persistent geopolitical risks, strong institutional demand, and ongoing global economic uncertainty indicate that the metal’s broader upward trajectory is likely to continue, even amid short-term fluctuations.
