Gold prices in Dubai saw a significant uptick on Monday, climbing by Dh6.5 per gram as market optimism grew regarding a potential peace deal between the US and Iran. At the start of the trading session, 24K gold reached Dh549.75 per gram, up from the previous week's closing of Dh543.25. Similar gains were observed across other purities, with 22K gold rising to Dh509.25, while 21K, 18K, and 14K variants also saw notable increases. Globally, spot gold rose by 0.5 percent to $4,565.24 per ounce, while silver enjoyed a stronger rally, gaining 1.5 percent.

Industry experts, including Simon-Peter Massabni of xs.com, attribute this bullish momentum to heightened geopolitical anxiety. Rather than a fleeting reaction to headlines, the current price surge suggests that investors are bracing for the long-term economic risks tied to supply chain disruptions in the Strait of Hormuz. Because any instability in this critical waterway could inflate global energy costs and dampen economic growth, market participants are increasingly viewing gold as the essential safe-haven asset to hedge against ongoing instability.