It is impossible to give exact translation without refering to the context, especially in translating literary text. In most cases, we need to read the whole book or even other books by the same author. These two sentences here are simply direct translations, the first one is closer to the appearance of the oringinal. But if the author want to emphasize the fact that the dagger is exposed infront of everybody, the second one is also a possible solution. The first one emphasizes the hiding of the weapon, and the second one enphasizes the exposing of it.

References

"steel with a pattern of wavy lines or with inlaid gold or silver"

-- "damask" #2, Oxford Advance Learner's English-Chinese Dictionary extended 4th ed., OUP, 1999.

"These silks had a profound influence on later Islamic, Byzantine, Sicilian, and Italian weavers and embroiderers. Even present-day words for textiles are often derived from the Islamic world, such as damask from Damascus.

-- "Islamic Art and Architecture," Microsoft Encarta Encyclopedia 99., Microsoft Corporation,1993-1998.

'damsk' means 'blue iron', so there is no need to mention again.