US-Iran Tension Pushes Gold Prices Down in Dubai
The escalation of US-Iran tension has pushed gold prices down in Dubai. Spot gold was trading at $4,384 an ounce on Wednesday morning, a 0.2% decrease from the previous day.
The Strait of Hormuz saw escalating strikes between the two nations, with Iran targeting oil tankers off US-allied Kuwait and Bahrain in retaliation for strikes on its own tankers.
Naeem Aslam, chief investment officer at Zaye Capital Markets, attributed the strengthening gold ecosystem to conflict uncertainty and higher oil prices feeding into inflation expectations. He noted that despite President Trump's prediction of a potential sharp decline in oil prices if the conflict is won, Brent crude remains near $99 per barrel.
In Dubai, 24K gold was trading at Dh528 per gram, while 22K, 21K, 18K, and 14K were priced at Dh489.0, Dh468.75, Dh401.75, and Dh313.5 per gram respectively.