Despite the sudden flare-up in hostilities between the US and Iran, gold prices in Dubai have shown remarkable resilience. As of Wednesday morning, 24K gold was trading at Dh285.25 per gram, marking only a marginal dip. While the global spot price for the precious metal saw a slight decline of 0.24 percent to reach $4,027.84 per ounce, gold continues to act as a primary safe-haven asset for investors navigating this period of renewed regional instability.

Market analysts, including Vijay Valecha of Century Financial, point out that while gold remains a defensive play, it faces headwinds from rising energy costs and the looming Federal Reserve meeting. With oil prices surging and expectations of a potential interest rate hike by year-end, the metal is struggling to gain upward momentum. Currently, gold is locked in a tight trading range, and experts suggest that unless it breaks decisively above $4,160, it may continue to face downward pressure, potentially testing support levels near $3,945 in the coming days.