Gold prices jump over Dh14 per gram, set to rise further due to US-Iran tensions

02/03/2026 06:23 AST

Gold prices in Dubai jumped Dh14.25 per gram this week due to the ongoing geopolitical tension between the US and Iran.

The 24K gold price was trading at Dh636 per gram on Saturday, up from Dh621.75 on Monday.

Similarly, 22K, 21K, 18K and 14K rose to Dh589.0, Dh564.75, Dh484.0 and Dh377.5 per gram, respectively.

Analysts expect gold prices to shoot up when markets open on Monday.

The US and Israel launched strikes on Iran on Saturday, plunging the Middle East into a new conflict that President Donald Trump said would end a security threat to the US and offer Iranians a chance to topple their rulers.

Iran launched missiles towards Israel, Israel's military said, and the Pentagon said the US strikes against Iran were named "Operation Epic Fury".

Gold's most direct and consistent response to US-Iran tensions is its role as a safe-haven asset. When markets fear war, investors tend to flee riskier assets like equities and move into gold, pushing prices higher. This pattern has been visible recently as gold has traded well above $5,000 an ounce in 2026, partly driven by escalating geopolitical fears regarding the US and Iran. Even headlines about stalled talks or potential military action have bolstered this demand for bullion as a store of value amid uncertainty.

During volatile days, gold has jumped by significant amounts - sometimes over $100 per ounce within short periods - as conflict concerns intensify. These rapid spikes reflect traders' tendency to price in increased risk quickly, especially when other safe havens like currencies or bonds also react.

Linh Tran, senior market analyst at XS.com, said the gold market will be particularly sensitive to several key factors. "First is the next phase of the US-Iran negotiations and whether geopolitical tensions genuinely de-escalate, as any positive or negative development could quickly reshape safe-haven demand," he said earlier.

Khaleej Times