On Tuesday, gold prices experienced an uptick amid ongoing concerns surrounding U.S. President Donald Trump’s tariff proposals and their potential impact on the global economy.
In the UAE, the price for 24k gold began at Dh389.50 per gram, while the 22k variant was available for Dh360.50 per gram. Other types of gold, including 21k and 18k, were priced at Dh345.75 and Dh296.25 per gram, respectively.
As of 0501 GMT, spot gold had risen by 0.6% to $3,229.93 per ounce, not far off from Monday’s record peak of $3,245.42. U.S. gold futures also increased by 0.6%, reaching $3,246.50.
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According to IG market strategist Yeap Jun Rong, “Gold continues to strengthen today… as investors seek safe-haven assets to counteract portfolio volatility, especially with the U.S. appearing to signal more tariffs ahead.”
The U.S. government is moving forward with investigations into the importation of pharmaceuticals and semiconductors, aiming to impose tariffs based on the argument that heavy dependence on foreign sources for medicines and chips poses a national security risk, as noted in Federal Register filings on Monday.
Trump indicated on Sunday that he would announce the tariff rate on imported semiconductors within the following week, leaving market participants in a state of anticipation.
As gold prices continue to reach new heights, the upward trajectory is expected to persist, and as long as there are uncertainties about tariffs, gold may maintain its support, stated Yeap.
Additionally, Raphael Bostic, President of the Atlanta Federal Reserve Bank, remarked that the prevailing uncertainty regarding tariffs and other policies has put the economy in a “significant pause,” suggesting that the Federal Reserve should hold its position until more clarity emerges.
Gold, which does not yield interest, serves as a protection against global instability and inflation, and it often benefits from low-interest-rate conditions.
According to data from the World Gold Council, investments in Chinese physically-backed gold exchange-traded funds this month have already surpassed total investments for the entire first quarter and have outpaced inflows into U.S.-listed funds.
Spot silver held steady at $32.33 per ounce, while platinum declined by 0.1% to $950.65, and palladium decreased by 1.1%, reaching $945.19.