Dubai gold prices soared on Wednesday, continuing a robust rally that added nearly Dh3 per gram at market opening. This unprecedented increase has set a historic benchmark for the market.
Dubai Gold Prices Update
By 9 am UAE time, the price of 24K gold rose Dh1.50, reaching Dh344 per gram. Meanwhile, 22K gold opened at Dh320.25 per gram, marking a Dh2.75 increase.
Similarly, other gold variants witnessed upward trends. The price of 21K climbed to Dh307 per gram, while 18K traded at Dh263 per gram.
Globally, gold prices surged to a record $2,854.86 per ounce, rising 0.43 percent. This increase was fueled by mounting concerns over a renewed trade war between the U.S. and China.
Beijing recently imposed tariffs on American imports in retaliation for new U.S. duties, escalating tensions between the two economic giants.
Market Analysis and Investor Sentiment
Rania Gule, senior market analyst at XS.com, highlighted growing market uncertainty. According to her, concerns about the economic fallout of U.S. President Donald Trump’s tariffs have strengthened gold’s safe-haven appeal.
“In this context, the key question is whether gold will break its record highs or retreat under economic pressure,” Gule stated.
She added that Trump’s decision to suspend tariffs on Mexico and Canada after a border security agreement briefly boosted investor confidence.
“This shift toward riskier assets has reduced gold’s appeal as a haven,” she explained. “The Federal Reserve’s hawkish stance has further pushed U.S. bond yields higher, strengthening the dollar and increasing negative pressure on gold prices.”
Inflation Concerns Keep Gold Relevant
Despite these negative pressures, Gule emphasized that supportive factors for gold remain strong. In particular, inflation concerns linked to Trump’s protectionist policies continue to bolster gold’s value.
In conclusion, Dubai’s gold prices have reached unprecedented heights amid global market dynamics and shifting investor sentiments. Moving forward, gold’s trajectory will depend on evolving economic trends and international trade developments.
