On Monday morning, 2 March 2026, Dubai’s gold market opened with a sharp surge its first full market reaction since the conflict escalated over the weekend. According to Dubai Jewellery Group (DJG) data, 24K gold opened at Dh645.25 per gram, up from Dh636.0 per gram at the weekend close an increase of Dh9.25 per gram in a single move.

Dubai prices: gains across all karats

The rally was broad-based, not limited to 24K:

• 22K: Dh597.5/gram

• 21K: Dh573.0/gram

• 18K: Dh491.0/gram

• 14K: Dh383.0/gram

In global markets, spot gold was trading around the $5,33xx–$5,36xx/oz range during Asia hours, depending on the timestamp; one reported level at 9:10 a.m. UAE time was $5,353.8/oz.

Silver in Dubai was also higher at the open, reported at around Dh344.13 per ounce, though it gave back part of its early gains later.

Why did gold react so strongly at the start of the week?

(a) A geopolitical shock compresses risk appetite

Major outlets have noted that the weekend escalation pushed global markets into a defensive posture: oil up sharply, equities under pressure, and capital rotating back into classic havens such as USD and gold.

In this environment, gold often acts as a real-time “thermometer” for uncertainty. Reuters quoted independent analyst Ross Norman, calling gold one of the clearest barometers of global uncertainty suggesting that prices may be repriced toward fresh records as the world enters a new era of heightened geopolitical risk.

(b) The energy channel: oil/gas higher → inflation risk returns → gold gets an extra tailwind

A key feature of this episode is the potential for energy prices to stay elevated as supply routes and shipping risks come back into focus. When energy rises sustainably, inflation narratives can return quickly and that is typically a supportive environment for gold.

(c) The broader uptrend remains in place: flows + rate expectations

The bigger backdrop still matters. Reuters and other market commentary have highlighted that gold’s long-running strength has been supported by factors such as central-bank buying, ETF participation, and shifting expectations around US monetary policy.

Some banks and strategists have also argued that if rate-cut expectations firm up or if geopolitical risks persist ETF inflows can become a catalyst for another leg higher.

What this means in practice in Dubai: what buyers and investors should watch

For jewellery buyers (rings, wedding sets, gifts):

• A fast jump in per-gram prices makes your final bill more sensitive to making charges and VAT. In the UAE, VAT is commonly 5% on retail purchases and is often applied to the full invoice amount (including making charges), depending on the item.

• Practical tip: ask clearly whether making charges are Dh/gram or percentage-based, compare across stores, and use DJG’s published reference prices as a benchmark when checking in-store quotes.

For investors (bars, coins, ETFs):

• Don’t track only headlines about the conflict. The key “transmission channel” is often energy because sustained oil/gas strength can turn a geopolitical spike into a longer-lasting macro tailwind for gold.

• Also watch US macro releases throughout the week, because changes in rate expectations can move gold sharply especially when the metal is already trading at elevated levels.

Short-term scenarios: what could push gold higher or cool it down?

• If the conflict broadens or drags on and energy stays firm: gold may continue to attract “insurance flows” and could retest recent highs.

• If tensions de-escalate quickly and risk appetite returns: gold can correct technically, especially after a gap-up style move at the week’s open.

• If US inflation/jobs data surprise to the upside and rate expectations shift abruptly: gold may see larger two-way swings (a common pattern when prices are already high).

Source: Khaleejtimes