Gold prices in the United Arab Emirates (UAE) edged higher on Tuesday. Global market concerns over US President Donald Trump’s tariff policies increased demand for gold as a safe-haven asset.
Notably, spot gold rose by 0.1% to $2,898.99 per ounce as of 00:30 GMT. US gold futures climbed 0.4% to $2,912.60 per ounce. This price increase came amid fears of a global trade war fueled by Trump’s aggressive tariff measures.
In the UAE, gold prices followed the global trend. The price of 24-carat gold rose by AED 1.25 to AED 350.75 per gram. Meanwhile, 22-carat gold increased to AED 326.25, also up by AED 1.25. 21-carat gold reached AED 313.00, while 18-carat gold edged up by AED 1.00 to AED 268.25.
Market analysts say US trade policy uncertainty drives investors toward gold. The Trump administration has imposed a series of tariffs disrupting global trade flows. These include a 10% tariff on Chinese imports. There are also delayed 25% tariffs on goods from Mexico and Canada. Additionally, reciprocal tariffs are proposed on countries taxing US imports.
Impact on UAE Gold Prices
Investor sentiment shifted further after US Federal Reserve Governor Michelle Bowman’s comments on Monday. Bowman stated she needed “increased conviction” that inflation would decline before supporting interest rate cuts. Higher interest rates usually reduce the appeal of non-yielding assets like gold. Her remarks, therefore, weigh heavily on market expectations.
The rise in gold prices reflects the metal’s traditional role as a safe-haven investment. Economic and political uncertainty often increases demand for gold. Analysts expect gold prices to remain elevated as tariff-related disruptions continue. Investors seek protection against ongoing market volatility.
As global trade tensions grow, gold is likely to maintain its appeal. This is especially true in regions like the UAE, where gold is a popular investment. Investors are advised to monitor US trade developments and Federal Reserve policy signals closely.
