After a sharp surge earlier in the week, gold prices in Dubai fell on Wednesday morning, mirroring global market fluctuations driven by economic uncertainty and trade conflicts.
According to data from the Dubai Jewellery Group, the price of 24K gold slipped by Dh1.5, opening at Dh350.75 per gram. Other gold variants also saw a decline, with 22K trading at Dh326.25, 21K at Dh313, and 18K at Dh268.25 per gram.
Meanwhile, on the global stage, gold prices remained steady at $2,911.04 per ounce as of 9:20 AM UAE time.
Market Volatility and Trade Tensions
Gold’s recent surge came amid rising uncertainty in the U.S. financial markets, affecting both stocks and bonds, according to Samer Hasn, senior market analyst at xs.com.
“Gold’s gains reflect the highest levels of uncertainty seen in U.S. markets this year, particularly as the country escalates its trade war with Canada, Mexico, and China,” Hasn explained.
The trade conflict intensified as new tariffs on Canada and Mexico, along with additional duties on Chinese imports, took effect. In retaliation, China imposed tariffs on American agricultural products, specifically targeting soybeans, a critical U.S. export valued at over $12 billion in 2024.
Beyond tariffs, China also introduced export restrictions on key materials used in both civilian and military applications, signaling broader economic tensions.
Concerns Over Economic Slowdown
The growing trade war has raised fears of an economic slowdown, particularly with inflationary pressures mounting. Experts are especially concerned about China’s potential expansion of restrictions on American technology firms, which could further disrupt global markets.
“The bond market remains in turmoil, as investors grapple with uncertainty surrounding the future of monetary policy,” Hasn added.
Despite Wednesday’s dip, gold is expected to remain a safe-haven asset amid ongoing economic and geopolitical uncertainty. Analysts suggest that market instability could support gold prices in the long run, as investors seek stability during turbulent times.
