Why did gold prices in Dubai drop despite rising geopolitical tensions due to US strikes on Iran’s nuclear sites?

Surprisingly, gold prices in Dubai fell over Dh1 per gram on Monday morning — with 24K dropping to Dh404.75 — despite expectations that the US joining Israel in bombing Iran’s nuclear facilities would drive prices up. Analysts had predicted a bullish surge in gold due to heightened Middle East tensions, especially with Iran threatening retaliation and possible disruptions to vital oil trade routes like the Strait of Hormuz. However, global spot gold also dipped slightly by 0.39% to $3,355.74 per ounce, suggesting markets may be pricing in uncertainty cautiously or expecting limited escalation. Experts still warn that any further conflict or retaliation could quickly reverse this dip and push gold to new highs. What’s your take—do you think gold will rebound sharply, or is the market overreacting to the current situation? 💬💰

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