Gold prices in Dubai climbed to a three-week high on Monday, driven by growing geopolitical tensions following an announcement by U.S. President Donald Trump to impose steep tariffs on imports from the European Union and Mexico.
At the start of trading, the price of 24-karat gold in Dubai was quoted at Dh404.75 per gram, marking a notable increase that prompted many consumers to delay non-essential purchases. The spike comes amid investor uncertainty, with shoppers opting to wait for prices to retreat before making significant jewelry or bullion acquisitions.
Other gold variants also saw a price uptick. The 22K was trading at Dh375.00 per gram, 21K at Dh359.50, and 18K at Dh308.25. Meanwhile, spot gold stood at $3,356.66 per ounce globally, reflecting wider market volatility triggered by the U.S. tariff threat.
The latest move from the White House has sent ripples through global markets. Trump announced over the weekend that the United States would impose 30 per cent tariffs on all imports from the EU and Mexico starting August 1. This aggressive stance, significantly higher than the 10 per cent tariff recently negotiated with the United Kingdom, has alarmed trade analysts and global investors.
Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank, said the decision was far from what EU leaders had anticipated. “They were hoping for something closer to the UK’s deal — a 10 per cent tariff with sectoral exceptions,” she explained. “Instead, they got a big, fat 30 per cent.”
Although Trump has indicated that further negotiations are possible, Ozkardeskaya expressed skepticism about the prospects for constructive dialogue. “Given the level of tariffs unveiled in the past week, many are questioning whether it’s worth negotiating with a government that seems increasingly erratic. European leaders are now actively considering alternative trade partnerships,” she said.
The rise in gold prices reflects traditional investor behavior during times of economic uncertainty, with gold seen as a safe-haven asset amid global instability. Analysts expect price fluctuations to continue in the coming weeks as markets respond to further developments in U.S. trade policy.
