Gold rose on Tuesday but stayed on track for its biggest monthly drop in more than 17 years as investors flocked to the dollar as the favoured safe haven amid the Middle East conflict that has raised inflation fears and bets for hawkish monetary policy response.

Spot gold 0.9 per cent to $4,550.68 per ounce by 0727 GMT. US gold futures for April delivery gained 0.5 per cent to $4,580.70.

Bullion has declined more than 13 per cent this month, putting it on track for its steepest decline since October 2008. Prices are, however, up about 5 per cent for the quarter, having scaled a record high of $5,594.82 on January 29. Prices are down 18.70 per cent from record highs.

Read more-Gold climbs more than 2% on softer dollar, easing fears of higher interest rates

“Traders are still seeing gold through the lens of a value investment at these levels, given where the precious metal was trading just a few months ago. So, it’s a combination of falling oil, a dip in the dollar and attractive buying levels, which has propelled gold higher today,” said Tim Waterer, chief market analyst, KCM Trade.

Gold is typically seen as a hedge against inflation and geopolitical risks, but the conflict-driven surge in energy costs is also raising expectations for higher interest rates and boosting the dollar’s appeal as the preferred safe haven.

The dollar was headed for its biggest monthly gain since July, making it as the strongest safe asset, supported by the US status as an energy exporter and investors’ flight to cash over the past month of conflict.

Traders have almost completely priced out any chance of a US rate cut this year from about two cuts expected before the war.

“If the Strait of Hormuz remains closed, oil prices could remain volatile with potential for further upside on supply constraints. So, this high oil story, which has plagued gold prices since the conflict began, hasn’t gone away yet,” Waterer said.

Goldman Sachs, however, said it continues to expect gold prices will reach $5,400 per troy ounce by end‑2026 on central bank diversification and Federal Reserve easing.

Among other metals, spot silver rose 2.7 per cent to $71.89 per ounce, spot platinum gained 1 per cent to $1,917.49, and palladium was up 1.5 per cent at $1,427. All three metals were down about 20 per cent each so far in March.

Indian billionaire Anil Agarwal is challenging fellow tycoon Gautam Adani’s winning bid for a bankrupt real estate giant in the Supreme Court, intensifying the fight over a $4bn pool of prized assets that includes the country’s only Formula One track.

Agarwal’s Vedanta has mounted a legal challenge over a creditor committee’s decision to award the assets of Jaiprakash Associates to Adani, a portfolio that includes homes, power, cement plants and the Buddh International Circuit track near New Delhi.

Read more-India’s Adani Enterprises under US probe over possible Iran-linked transactions

Vedanta has argued its $1.8bn bid for the assets was better, but the committee, and an Indian tribunal, decided in Adani’s favour by saying its $1.5bn bid was superior because it had higher upfront payments.

Vedanta is now asking India’s top court to pause the acquisition and hear its concerns, Supreme Court listing records seen by Reuters on Tuesday showed.

Vedanta and Adani did not respond to requests for comment.

A win could give a major boost to Adani’s real-estate expansion, adding to its other key projects in Mumbai, which include redeveloping one of Asia’s largest slums, Dharavi.

Trying to restart F1 in India

F1 races have been stalled in India for 13 years due to regulatory and taxation disputes, forcing organisers to discontinue the programme. Adani’s son, Karan Adani, said at a public event last month he is “very personally engaged” to bring back F1 to India.

Vedanta’s Agarwal on Sunday expressed disappointment about how the Jaiprakash Associates sale process had been handled, writing on X: “We will place the facts in the right way.”

Vedanta’s business interests stretch across aluminium, power and steel.

Dubai has introduced a Dhs1bn economic incentives package designed to support businesses and individuals, with the measures set to come into effect from April 1 and remain in place for three to six months.

The package, announced under the direction of Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, is being positioned as a targeted response to current global uncertainty, with a focus on easing cost pressures and sustaining economic momentum.

Market confidence and investor sentiment

Hamza Dweik, head of trading (MENA) at Saxo Bank, said the initiative underscores Dubai’s ambition to remain a leading global economic hub.

“Sheikh Hamdan’s announcement of the new business support package marks a significant step in Dubai’s ongoing effort to position itself at the forefront of global economic development. This initiative reflects a proactive approach to building an environment that is both resilient and future-ready for businesses. The tailored support and strategic incentives will strengthen confidence across the market, encouraging local and international stakeholders to pursue growth and innovation with renewed assurance.

“This initiative is expected to strengthen investor sentiment further, reinforcing confidence in the market’s stability and long-term potential. As global investors scrutinize markets more closely, these forward-looking measures enhance Dubai’s appeal as a secure, attractive destination for capital, supporting sustained inflows and deeper engagement across sectors.

“This announcement serves as a catalyst for momentum across multiple sectors, which reinforces Dubai’s reputation as a city that enables success through deliberate policy, strong leadership, and collaborative engagement. It also highlights the city’s focus on inclusivity, ensuring that opportunities are accessible to a broad range of enterprises while encouraging innovation and competitiveness on a global scale.”

Echoing similar sentiment, Madhur Kakkar, founder and CEO of Elevate Financial Services, framed the package as part of Dubai’s broader economic philosophy.

“This initiative strongly reflects the Dubai Promise, a city where visionary leadership consistently steps forward to support its people, businesses, and long-term growth. The Dhs1bn package is not just a response to current pressures, but a clear signal of intent to build a more resilient, flexible, and future-ready economy. As the region navigates through current geopolitical developments, such measures will not only support stability in the near term but position Dubai to emerge even stronger and reach greater heights once the noise around current events settles down.”

Amit Dua, president at SunTec Business Solutions, highlighted the operational impact of the measures, particularly around liquidity and continuity.

“By prioritising liquidity, continuity, and business confidence, Dubai is not merely cushioning risk; it is protecting momentum. The measures coming into effect from April 1, 2026, give businesses more room to manage volatility without losing sight of growth. That is especially significant in sectors where precision, cash-flow visibility, and execution agility are critical. In that sense, the package does more than offer short-term relief. It strengthens the operating environment for enterprises seeking to modernise, respond faster, and manage revenue and operations with greater control.”

Kalpesh Khakhria, group chairman of Klay Group, said the package would further enhance Dubai’s positioning as a destination for global capital.

“What drives investor confidence in the Gulf today is the undeniable reality that economic management here is intentional rather than reactive. By actively enhancing liquidity and alleviating financial burdens for companies, the government is providing the exact stability and clarity that entrepreneurs and business leaders need to confidently expand their operations. For the wealth management industry, this business stimulus acts as a massive catalyst. As the UAE continues its fundamental transition from a passive safe-haven into a primary, active base for global capital, empowering the private sector will undoubtedly encourage even more ultra-high-net-worth families, entrepreneurs, and family offices to put down permanent roots and build multi-generational wealth in the Emirates.”

Targeted measures to ease cash flow

Vijay Valecha, chief investment officer at Century Financial, pointed to the practical design of the package, noting that it focuses on easing cash flow pressures rather than direct spending.

“Dubai’s Dhs1bn economic facilitation package (around $272m) is a focused and timely step to support businesses while maintaining economic growth amid current global uncertainty. This is not traditional government spending; instead, it is designed to ease cash flow pressure through cost relief and payment flexibility, which makes it faster and more effective in the current environment.”

Key measures under the package include:

• Business Support: Selected government fees can be deferred for up to three months, helping companies manage short-term cash flow.
• Tourism & Hospitality: Hotels will get a full deferral of tourism-related fees, providing relief to a sector sensitive to changes in travel demand.
• Trade & Logistics: Customs payment deadlines have been extended from 30 to 90 days, improving working capital for importers and exporters.
• Trade Infrastructure: The Virtual Warehouses Initiative allows temporary imports and duty exemptions on certain high-value goods.
• Employment: The Dubai Empowerment Strategy continues to support jobs, with around 1,200 Emiratis supported and over 7,000 jobs created so far.
• Workforce Development: The government aims for 100% compliance in worker accommodation standards by 2033, which will improve productivity.

“Overall, the package shows Dubai’s proactive and flexible policy approach. By focusing on liquidity, lower costs, and smoother trade, it helps businesses stay resilient and supports long-term economic growth.”

Collectively, business leaders say the package reflects Dubai’s continued emphasis on policy agility, liquidity support, and investor confidence—factors seen as critical in sustaining growth as global economic conditions remain uncertain.

Dubai Virtual Assets Regulatory Authority (VARA) has introduced a comprehensive regulatory framework for exchange traded derivatives (ETDs) in virtual assets, positioning Dubai among the first jurisdictions globally to regulate such products under a dedicated rulebook.

The framework, outlined in Version 2.1 of VARA’s Exchange Services Rulebook, allows licensed Virtual Asset Service Providers (VASPs) to offer derivatives products within a defined regulatory perimeter, subject to explicit authorisation and stringent compliance requirements.

The move comes amid rising demand for derivatives exposure in virtual asset markets, as regulators globally seek to address the risks associated with increasingly complex digital financial instruments.

VARA’s framework establishes binding requirements across key areas, including client suitability and classification for higher-risk products, margin and leverage controls, and the segregation of client assets to reduce systemic and counterparty risks. It also introduces enhanced disclosure obligations aligned with existing marketing regulations, alongside regulatory intervention powers that enable the authority to act during periods of market stress or misconduct.

The provisions are designed to support the development of more sophisticated market structures while ensuring appropriate safeguards for investors and maintaining market integrity.

Ruben Bombardi, general counsel at VARA, said: “Derivatives are a natural next step in the evolution of virtual asset markets, but they demand a higher standard of governance. VARA’s framework gives licensed providers a clear path to offering these products responsibly, while giving market participants confidence that Dubai’s virtual asset ecosystem operates under rules that are rigorous, enforceable, and designed to protect them. This is the best way to build a market that will stand the test of time.”

The updated rulebook forms part of VARA’s broader strategy to ensure innovation in the virtual assets ecosystem is supported by robust governance, transparency and effective regulatory oversight.

The Exchange Services Rulebook Version 2.1 is effective immediately and applies to all VASPs licensed to conduct exchange services in Dubai.

Read: DFSA updates crypto token rules to strengthen DIFC market

Kuwait Petroleum Corporation (KPC) said a fire on board a Kuwaiti oil tanker off the coast of Dubai has been brought under control following a drone attack emanating from Iran.

“The crew of the VLCC Al-Salmi successfully extinguished a fire caused by a direct Iranian attack while the vessel was at anchorage outside Dubai,” KPC said in a statement issued on Tuesday afternoon.

The company said the fire was contained by 4:26am Kuwait time in coordination with UAE authorities.

No injuries were reported among the 24 crew members, and there was no oil spill or environmental damage, KPC added. An assessment of the damage is ongoing.

Earlier, the Dubai Media Office said authorities were responding to an incident involving a drone impacting a vessel at Anchorage “E” in Dubai waters.

All crew members were accounted for and safe, it said, adding that maritime firefighting teams had been deployed to manage the situation in line with established safety and emergency protocols.

Authorities said further updates would be provided as more information becomes available.