The price of gold increased on Tuesday as concerns persist regarding U.S. President Trump’s tariff proposals and their potential effects on the global economy.
In the UAE, the price for 24K gold opened at Dh389.50 per gram on Tuesday. The 22K variant was priced at Dh360.50 per gram, while 21K and 18K were available at Dh345.75 and Dh296.25 per gram, respectively.
As of 0501 GMT, spot gold rose 0.6% to $3,229.93 an ounce, approaching Monday’s peak of $3,245.42. U.S. gold futures also saw a 0.6% increase, settling at $3,246.50.
“Gold prices are strengthening today as investors seek safe-haven assets to shield their portfolios from volatility, particularly as the U.S. appears to be preparing for additional tariffs,” commented IG market strategist Yeap Jun Rong.
The U.S. government is conducting investigations into the importation of pharmaceuticals and semiconductors, aiming to impose tariffs based on claims that heavy dependence on foreign production for these sectors poses a national security risk, according to recent filings with the Federal Register.
Trump indicated on Sunday that he would unveil the tariff rate for imported semiconductors within the week, adding to market apprehension.
With gold prices reaching new heights recently, the upward momentum is expected to persist as long as uncertainty surrounding tariffs continues, Yeap remarked.
In a related note, Atlanta Federal Reserve Bank President Raphael Bostic highlighted that the ambiguity linked to tariffs and various policies has caused the economy to enter a “significant pause,” suggesting that the Fed should remain cautious until clearer signals emerge.
Gold, which does not yield interest, serves as a protection against global instability and inflation, and generally flourishes in an environment of low interest rates.
Investments in gold exchange-traded funds backed by physical gold in China have already surpassed the total influx for the entire first quarter and now exceed inflows seen in U.S.-listed funds, based on data from the World Gold Council.
Spot silver held steady at $32.33 an ounce, while platinum dipped 0.1% to $950.65, and palladium decreased by 1.1% to $945.19.