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Gold prices rose in Dubai on Tuesday morning rose over Dh5 per gram, inching closer to the Dh650 mark as investors rushed to safe-haven assets due to ongoing military conflict in the Middle East.

According to Dubai Jewellery Group data, the 24K gold price was trading at Dh646.5 per gram, up from Dh641 at the close of the market on Monday.

Among the other variants of the precious metal, 22K, 21K, 18K, and 14K were trading at Dh598.75, Dh574.0, Dh492.0 and Dh383.75 per gram, respectively.

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The precious metal prices eased a bit on Monday evening, but jumped again at the market opening on Tuesday.

Spot gold was trading at $5,361.19 per ounce, up 1.23 per cent at 9.10 am UAE time.

Meanwhile, silver price gained 1.65 per cent to $90.11 (Dh330.84) per ounce in early trade.

Josh Gilbert, Market Analyst at eToro, said gold has once again acted as the clearest safe haven.

“Gold remains the asset investors turn to in times of geopolitical stress. Unless we see meaningful de-escalation, that safe-haven demand is unlikely to fade,” said Gilbert.

Meanwhile, higher-risk assets, including cryptocurrencies, have come under pressure as investors rotate toward defensive positions.

“In risk-off environments, capital typically flows to traditional safe havens rather than more volatile assets,” he added.

Tim Waterer, chief market analyst at KCM Trade, said the scope and duration of the conflict remain ​very much open-ended, and with those uncertainties in play, gold is capturing the lion’s ⁠share of safe-haven demand.

“Gold would arguably be trading higher than current levels were it not for dollar ​appreciation since the conflict ​intensified. Inflation worries are front and centre for traders right now, given the direction of oil prices and reduced shipping volumes through the Strait of Hormuz,” Waterer told Reuters.

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