Dubai Gold Prices Climb Amid Global Tensions

Feb 20, 2026

82 min

Feb 20, 2026 06:30

Dubai gold price rises again as Middle East tensions lift global demand

## Rising Gold Prices in Dubai

Gold prices in Dubai have increased again, continuing an upward trend due to global geopolitical tensions and uncertainties surrounding US interest rates. As of Friday morning, the price for 24-karat gold reached Dh602.50 per gram, up from Dh601.75 the previous day. Similarly, 22-karat gold rose to Dh558 per gram.

## Global Factors Influencing Gold Demand

Internationally, gold prices have stabilized near $5,000 an ounce after recent gains. This rise is attributed to heightened geopolitical risks in the Middle East, which have boosted demand for safe-haven assets. The situation intensified following US President Donald Trump's comments on the limited timeframe for nuclear negotiations with Iran and the increased American military presence in the region.

## Impact of US Interest Rates

The outlook for US interest rates remains a significant factor affecting gold prices. The metal typically benefits when borrowing costs are low. Recent statements from Federal Reserve officials have introduced uncertainty regarding potential rate cuts, influencing market sentiment.

## Market Volatility and Long-term Trends

The gold market has seen significant fluctuations recently, with prices dropping sharply earlier this month from record highs. Despite this volatility, long-term factors such as investor shifts away from traditional assets continue to support gold's strength. Major banks predict a price increase later this year, driven by ongoing central bank purchases.

## Supply Constraints

Supply issues also play a role in supporting gold prices. Newmont, a leading gold producer, announced a 10% reduction in output this year due to mine upgrades. Analysts suggest that these supply constraints, combined with geopolitical and monetary uncertainties, may keep gold prices elevated in the near future.

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