Gold Rates In UAE: Huge Jump Of Nearly Rs 1,000 In 24-Carat Yellow Metal In Dubai; WHY?

The Israel-Iran and proxies feud continues to pump up gold prices across countries. The UAE, an ally of Israel, also witnessed similar trends when it came to bullion. On April 16, the price of 24-carat yellow metal witnessed a massive jump of nearly Rs 1,000 in the emirate city, of Dubai.

In Indian rupees, the 22-carat gold price rose by Rs 966.34 on April 16 to Rs 60,822.81 per 10 grams in Dubai, compared to Rs 59,856.47 price on the previous day. Similarly, 100 grams surged by a whopping Rs 9,663.44 to Rs 6,08,228.12 versus Rs 5,98,564.69 on the previous day. 1-gram and 8-gram of gold were up by Rs 96.63 and Rs 773.08 to Rs 6,082.28 and Rs 48,658.25 respectively.

A similar surge has been recorded in 24-carat across grams in Dubai in terms of Indian rupee.

24-carat of gold is priced at Rs 65,654.53 in 10 grams, up by Rs 966.34 from the previous day's print. Also, the price was up by Rs 9,663.44 to Rs 6,56,545.31 in 100-grams, while 8-gram jumped by Rs 773.08 to Rs 52,523.62 and 1-gram was up by Rs 96.63 to Rs 6,565.45 from the previous day.

Notably, the 22-carat in Dubai in terms of Indian rupee witnessed a much higher surge than to gold price of the same carat in India. 22-carat is up by Rs 900 in India in 10 grams on April 16.

In the local currency, 22-carat and 24-carat gold climbed by 4.25 to 425 dirhams. While 18-carat gold was up by 0.40 to 40 dirhams.

There are several reasons for Dubai to be called the City of Gold. The city is popular, especially amongst the ex-pat community and tourists.

24-carat in Dubai is available at $2,887.50 dirhams in 10-gram, while 22-carat is available at 2,675 dirhams. Lastly, 18-carat gold is priced at $2,189 dirhams in the same gram.

All eyes are on now Israel who is expected to retaliate after Iran for the first time in history launched some 300 missiles at the country directly.

Until a few weeks ago, Israel and Iran kept their spat limited to airstrikes and verbal warnings. Israel has been combating air-missiles on both south and north cross-borders with Hamas, Lebanon's Hezbollah and even Syria since the Gaza war broke out. But matters escalated after warplanes bombarded an Iran embassy in the capital city of Syria, Damascus on April 1.

Iran-led by Ayatollah Ali Khamenei launched hundreds of airstrikes including missiles and drones in less than 48 hours of US President Joe Biden's warning of not attacking Israel. However, Israel and its allies from the west along with Jordan had intercepted these missiles. The success rate was 99%, and hence, the damage was very minimal in Israel.

Later on, Iran threatened to launch weapons never before if Israel retaliated. Meanwhile, Israel has stated that they will exact the price from Iran when the time is right. Israel's representative, Gilad Erdan has appealed to the UN for calling upon the Security Council to impose sanctions on ran.

Amidst the latest geopolitical tensions, the trend for bullion remains positive.

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, "The overall trend in gold remains positive, with strong support seen around the 70000rs mark. Minor short-term corrections may occur, but the broader outlook for gold remains bullish."