Amid escalating military conflict between Israeli forces and Palestinian militant group Hamas, the gold prices spiked at the opening of the markets in the United Arab Emirates (UAE) on Wednesday morning, October 18.
The Dubai Jewellery Group data showed 24-carat gold price trading at Dirhams 234.75 per gram on Wednesday, as compared to Tuesday night’s, October 17, close at Dirhams 233.5 per gram.
22, 21, and 18-carat gold were priced at Dirhams 217.5, Dirhams 210.5, and Dirhams 180.25 per gram, respectively, at 9:15 am UAE time.
Investors turned to gold which is often viewed as a safe store of value during times of political and economic instability.
In addition, gold is often seen as a hedge against inflation. When the value of the currency falls due to rising inflation, investors buy gold to protect the value of their investment, increasing the demand for gold and increasing its price.
Investors now await Federal Reserve Chairman Jerome Powell’s speech on Thursday, October 19, for clues on interest rates, Reuters reported.
Israel-Hamas war
The war began on Saturday, October 7, after Hamas infiltrated southern Israel, sending fighters, firing 5,000 rockets, and taking captives, including women, children, and the elderly, which prompted Prime Minister Benjamin Netanyahu to warn of “a long and difficult war.“
Gaza’s Ministry of Health said that at least 3,000 Palestinians have been killed, including 1,000 children, and 12,500 citizens injured so far due to Israeli attacks.
In Israel, the number of people killed in Hamas attacks reached 1,400, 302 Israeli soldiers, while more than 3,400 were injured.