On the morning of March 17, 2026, gold prices in Dubai moved higher again as defensive capital returned to precious metals. According to data cited by Khaleej Times from the Dubai Jewellery Group, 24K gold was trading at Dh607 per gram, up from Dh602.5 per gram at the previous market close. Other gold categories, including 22K, 21K, 18K, and 14K, also posted gains. In the international market, spot gold reached $5,041.47 per ounce, up 0.9%, while silver climbed to $82 per ounce.

The Middle East Conflict Is Pushing Gold Higher

The main driver behind this latest move remains geopolitical tension. The conflict involving the United States, Israel, and Iran entered its 18th day on March 17, increasing demand for safe-haven assets. At the same time, oil prices have remained elevated, adding further pressure to market sentiment and making investors more cautious toward risk assets.

Oil Above $100 Is Making Gold’s Outlook More Complicated

Reuters reported that on March 17, Brent crude rose to around $103.28 per barrel, while WTI reached $96.85 per barrel, as disruptions in the Strait of Hormuz continued. This waterway is a critical transit route for roughly 20% of global oil and LNG flows, so any disruption in the area can quickly fuel concerns over inflation and rising energy costs. That supports gold through its safe-haven role, but at the same time, it also raises fears that interest rates may need to stay higher for longer.

Why Is Gold Rising but Still Not Breaking Out Strongly?

What stands out is that gold is firm, but not rallying in an explosive way. Reuters noted that when uncertainty rises, investors do not move only into gold they also turn to the U.S. dollar and cash to maintain liquidity. Saxo Bank also pointed out that gold is currently holding above $5,000 per ounce, but remains capped by two opposing forces: on one side, safe-haven demand and fiscal uncertainty; on the other, a stronger U.S. dollar and expectations that the Fed may find it difficult to cut rates aggressively if energy prices continue to rise.

Gold’s Long-Term Foundation Still Looks Solid

Although short-term volatility remains, gold’s longer-term foundation is still well supported. The World Gold Council said that total gold demand in 2025 exceeded 5,000 tonnes for the first time, while net purchases by central banks reached 863 tonnes, still one of the highest levels in history. This shows that gold is not only benefiting from temporary fear-driven flows, but is also backed by reserve diversification, asset-allocation demand, and broader macroeconomic risk hedging.

At this stage, gold is being supported by several factors at once: prolonged geopolitical conflict, elevated oil prices, inflation risks, and a renewed return of safe-haven demand. However, gold’s advance has not been entirely smooth because the market is still weighing the impact of a stronger U.S. dollar and higher interest rates. In other words, gold remains in a constructive but range-bound state: strong enough to retain investor interest, but still lacking a sufficiently powerful catalyst for a decisive breakout.

Source: Khaleejtimes