By: Economy Middle east

Gold prices rose over 1 percent on Wednesday, rebounding from a more than one-week low hit in the previous session, as a widening Middle East conflict sent global markets tumbling and supported safe-haven demand. Spot gold gained 1.02 percent to $5,164.47 per ounce. U.S. gold futures for April delivery added 0.95 percent to $5,172.61. On Tuesday, bullion fell more than 4 percent to its lowest since February 20, weighed by a firmer dollar and dimming rate-cut prospects as inflation concerns were intensified by fears of a prolonged war.

Surge in UAE retail gold rates

The UAE retail market saw a substantial jump in gold rates across all carats on Tuesday morning. The price for 24-carat gold rose AED7.00 to AED621.25 per gram, while 22-carat gold increased AED6.50 to AED575.25. Other variants followed the upward trend with 21-carat increasing AED6.50 reaching AED551.75, 18-carat increasing AED5.25 hitting AED472.75, and 14-carat gold increased AED4.25 trading at AED368.75.

Market resilience and global energy shocks

Gold could shrug off the previous session’s selloff over the coming days as the metal has swayed to its own narrative and has been resilient despite whatever the dollar and yields have been doing since the beginning of last year, said Ilya Spivak, head of global macro at Tastylive. Oil and gas prices surged as the U.S.-Israeli war on Iran halted energy exports from the Middle East, with Tehran attacking ships and energy facilities. 

Metals rebound as Fed pauses

Investors expect the U.S. Federal Reserve to hold rates at the end of its next two-day meeting on March 18, according to the CME Group’s FedWatch tool. Spot silver advanced 1.80 percent to $84.71 per ounce on Wednesday, after falling more than 8 percent in the last session. Spot platinum added 2.45 percent to $2,135.00 per ounce, while palladium gained 2.45 percent to $1,671.00.