Investors are responding cautiously to political developments in the Middle East, which remain one of the key drivers influencing global risk sentiment.
Gold prices jumped by Dh6.5 per gram in Dubai on Monday morning as precious metals rallied on expectations of a potential US-Iran peace deal.
The price of 24K gold in Dubai opened at Dh549.75 per gram on Monday, up from Dh543.25 per gram at the close of trading last week.
The 22K gold price climbed Dh6 per gram to Dh509.25 per gram, while 21K, 18K and 14K also opened higher at Dh488.25, Dh418.5 and Dh326.5 per gram, respectively.
Spot gold was trading 0.5 per cent higher at $4,565.24 per ounce, while silver gained 1.5 per cent to $285.86 per ounce.
Simon-Peter Massabni said gold is currently going through one of its most sensitive and complex phases since the start of the year, driven not only by sharp price movements but also by growing geopolitical and economic uncertainty.
“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 said.
Massabni added that the bullish price gap is not just a short-term technical reaction, but a sign that markets are already re-evaluating 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 a safe-haven asset during periods of instability,” he added.
