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Middle East Crisis Drives Upward Trend in Gold Prices

On Thursday, gold prices resumed their upward trend, fueled mostly by mounting fears about the Middle East conflict.

Gold prices resumed their upward trajectory on Thursday, primarily driven by growing concerns about the Middle East crisis. 

Data from the Dubai Jewellery Group revealed significant increases in gold categories at the market’s opening.

Specific Gold Categories Surge:

  • 24K Gold: It surged to Dh241.0 at the market’s opening, marking a half a dirham per gram increase from Wednesday’s closing price.
  • 22K Gold: Opened higher at Dh223.0 per gram.
  • 21K Gold: Started the day at Dh216.0 per gram.
  • 18K Gold: Similarly, opened with a significant increase at Dh185.0 per gram.

Global Impact on Spot Gold:

On a global scale, the price of spot gold rose by 0.4 percent to $1,988.38 per ounce by 9.26 a.m. UAE time. 

This surge can be attributed to the ongoing Middle East conflict, which raises investor concerns. 

Safe-haven bullion has remained resilient despite a stronger US dollar and rising bond yields.

Expert Analysis:

According to Daniel McCarthy, a strategist at dailyFX, the spot gold price has shown remarkable resilience as it rallied during Thursday’s trading session. 

This upward trend in gold prices has defied expectations, especially with the US dollar strengthening in other markets and Treasury yields bouncing back after a recent dip. 

The increased volatility in gold suggests that significant price movements may be on the horizon.

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