Gold prices in Dubai witnessed a sharp rebound on Thursday, climbing by Dh6.75 per gram as renewed hostilities between the United States and Iran rattled global markets. The 24K variant opened the day at Dh535, a noticeable jump from the previous day’s close of Dh528.25. This upward trend extended across all categories, with 22K, 21K, 18K, and 14K gold also seeing significant gains. On the international stage, spot gold rose by 1.43 percent to reach $4,431.78 per ounce, while silver also saw a 1.69 percent increase, trading at $65.97 per ounce.

Despite the daily spike, market analysts remain cautious about the long-term trajectory of the metal. Vijay Valecha, Chief Investment Officer at Century Financial, pointed out that while geopolitical tensions in the Strait of Hormuz are currently driving safe-haven demand, the precious metal faces headwinds from a strengthening US dollar and rising yields. With ETF inflows weakening and the Federal Reserve potentially maintaining a hawkish stance, experts suggest that the current market structure remains bearish. Traders are keeping a close watch on key support levels, as analysts warn that unless gold breaks through major resistance, it may continue to face downward pressure in the near term.