Gold prices, seen as a safe haven, surged to an all-time high on Wednesday morning, nearly reaching Dh400 per gram.
According to data from the Dubai Jewellery Group, the 24K gold was trading at Dh395.75 per gram at the market’s opening on Wednesday, a rise from Dh389 at the beginning of the week. Likewise, the prices for 22K, 21K, and 18K gold also increased, reaching Dh366.5, Dh351.5, and Dh301.25 per gram, respectively.
Analysts predict that if the ongoing trade tensions between the US, China, and other nations escalate further, gold prices could soon hit Dh400 per gram in Dubai.
On the international market, gold was priced at $3,287.63 per ounce, reflecting a 2% increase at 9:10 AM UAE time, largely driven by concerns over global trade wars and a declining dollar.
Linh Tran, a market analyst at xs.com, noted that the increasing trade conflict between the US and China significantly supports gold prices.
“President Donald Trump has officially imposed tariffs of up to 145% on Chinese imports, prompting China to retaliate with its own tariffs of 125% on American goods, emphasizing its readiness to ‘fight to the end’,” Tran explained.
“However, Trump’s trade policy has exhibited inconsistencies, leading to unpredictable market forecasts. Earlier this week, he unexpectedly exempted smartphones and specific electronic devices from high tariffs, which helped boost Wall Street. He also suggested that exemptions might be considered for automobiles, sparking hopes for renewed negotiations in some areas. Yet, these inconsistencies in Trump’s policies are creating significant uncertainty regarding US economic strategy, which has resulted in a marked decrease in global risk appetite. In this environment, gold remains a preferred investment as a secure asset,” she added.