Gold prices surged past Dh400 per gram in Dubai on Tuesday as global rates rallied above $3,300 per ounce, driven by heightened investor uncertainty surrounding potential U.S. tariff hikes and a softening dollar.
According to the Dubai Jewellery Group, 24-karat gold was trading at Dh400.25 per gram in local markets. Prices for 22K, 21K and 18K variants were quoted at Dh370.75, Dh355.50, and Dh304.75 per gram, respectively.
The spike in prices mirrors international trends, where spot gold climbed to $3,329.84 per ounce in early trading—an increase of nearly 1% compared to the previous session, when it had dipped below $3,300.
Analysts attributed the rally to a combination of global economic jitters and currency weakness. “Weaker dollar and concerns about the impact if Trump’s tariff deadline is not extended are supporting gold at the moment,” said Nicholas Frappell, global head of institutional markets at ABC Refinery.
The uncertainty intensified after U.S. President Donald Trump publicly voiced dissatisfaction with trade negotiations between Washington and Tokyo. Meanwhile, Treasury Secretary Scott Bessent signalled that key trade partners could soon face significantly higher tariffs if agreements are not reached.
In Dubai, where gold is a popular commodity for investment and personal use, local jewellers noted that price volatility is already affecting consumer behaviour. “When prices rise this sharply, residents tend to scale back purchases or opt for smaller items, often switching to 18K jewellery instead of higher-purity options like 22K or 24K,” said one gold retailer in Deira’s Gold Souk.
The current price jump is particularly impactful as many expatriate residents prepare for summer travel, when gold jewellery purchases typically increase due to gifting and wedding season.
Despite the higher prices, Dubai remains a preferred destination for gold buyers, owing to its competitive pricing and tax-free gold policy. However, prolonged price spikes could weigh on sales volume in the short term.
Market experts say gold’s traditional status as a safe-haven asset will continue to drive demand as long as global trade tensions persist and currency instability continues.
Gold prices in Dubai are updated twice daily, and further fluctuations are likely in the coming weeks depending on the outcome of international trade negotiations and the strength of the U.S. dollar.
