UAE Gold Prices Surge Amid Middle East Tensions

Mar 2, 2026

75 min

Mar 2, 2026 05:30

UAE gold prices jump more than Dh10 as war fears drive rush to safe assets

## Gold Prices Hit New Highs

Gold prices in the UAE have seen a significant increase, with the 24-karat gold reaching Dh646.45 per gram on March 2, up from Dh636 the previous day. This rise reflects a broader global trend as investors seek safe-haven assets due to escalating tensions in the Middle East.

## February's Steady Climb

The increase in gold prices has been building over the past month. Starting at Dh564 per gram in early February, prices gradually rose, surpassing Dh600 by mid-month. By February 27, the price had reached Dh629.50, continuing to climb in the following days.

## Geopolitical Tensions Fuel Demand

The recent spike in gold prices is largely attributed to heightened geopolitical tensions. Military actions in the region have intensified fears of a broader conflict, prompting investors to move funds into gold. This shift mirrors reactions in energy markets, where oil prices also surged due to concerns over potential supply disruptions.

## Structural Factors Supporting Gold

Beyond immediate geopolitical factors, gold's upward trend has been supported by ongoing central bank purchases and a general move away from sovereign bonds. The metal has gained about 25% in 2026, driven by persistent demand for inflation protection and economic uncertainty.

## Market Outlook

The short-term outlook for gold prices will depend on geopolitical developments. Continued tensions could sustain high prices, while any de-escalation might lead to temporary declines. However, long-term factors such as global economic uncertainty and institutional demand suggest that gold's overall upward trajectory is likely to continue.

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