Gold prices, viewed as a safe-haven asset, surged to a historic high on Wednesday morning, nearing the Dh400 per gram mark.
According to data from the Dubai Jewellery Group, the price of 24K gold opened at Dh395.75 per gram on Wednesday, an increase from Dh389 at the beginning of the week. Likewise, the prices for 22K, 21K, and 18K gold rose to Dh366.5, Dh351.5, and Dh301.25 per gram, respectively.
If tensions from the ongoing global tariff disputes involving the US and China escalate further, market experts predict that gold prices could soon hit Dh400 per gram in Dubai.
At a global level, gold was trading at $3,287.63 per ounce, marking a 2% increase as of 9:10 am UAE time. This rise can be attributed to concerns regarding the tariff war and a weaker US dollar.
Linh Tran, a market analyst at xs.com, pointed out that the intensifying trade conflict between the US and China significantly influences rising gold prices.
“President Donald Trump has officially implemented tariffs as high as 145 percent on Chinese imports, to which China has swiftly responded with retaliatory tariffs of 125 percent on American goods, stating its readiness to ‘fight to the end’,” Tran commented.
“However, Trump’s trade policies have displayed inconsistency, complicating market forecasts. Earlier this week, he unexpectedly granted exemptions for smartphones and certain electronic products from the high-tariff list, which sparked a rally on Wall Street. He also suggested that he might allow tariff exemptions for automobiles, which raised hopes for renewed negotiations in some areas. Nonetheless, this inconsistency in policy direction is creating significant uncertainty regarding the US economic strategy, resulting in a notable decline in global risk appetite. In such a scenario, gold remains a preferred safe-haven choice,” she added.
Waheed Abbas
Waheed Abbas serves as Assistant Editor, focusing on real estate, aviation, and various business-related topics that dir…More