Residents across Dubai are closely monitoring gold prices as the market reacts to heightened global economic tensions following a wave of new U.S. tariffs and a subsequent 90-day pause in duties for most countries. The uncertainty has driven significant fluctuations in gold rates, prompting a surge in local interest in the yellow metal.
According to the Dubai Jewellery Group, gold prices opened significantly higher on Friday morning. The price of 24-karat gold climbed to Dh386.5 per gram, up Dh10 from Thursday’s opening rate. Similarly, 22k gold opened at Dh358 per gram, compared to Dh348.75 the previous day. The 21k and 18k categories also saw notable increases, with rates rising to Dh343.25 and Dh294.25 per gram respectively — a jump of Dh8.75 and Dh7.75.
The spike comes just days after gold prices hit a rare low on Monday in the immediate aftermath of U.S. President Donald Trump’s announcement of steep new tariffs. The decline provided an opportune moment for some UAE residents to invest in gold, with a few reporting profits of up to Dh1,200 within just 24 hours as prices rebounded rapidly.
“Gold remains a reliable hedge during times of geopolitical and economic turmoil,” said one Dubai-based gold trader. “With markets on edge, residents see it as both a safe haven and a short-term investment opportunity.”
The volatility in gold rates is closely tied to ongoing global trade tensions, particularly the escalating dispute between the U.S. and China. While President Trump introduced a 90-day pause on new tariffs for most countries — applying a reduced 10% baseline — he simultaneously raised duties on Chinese imports to a staggering 125%, intensifying an already strained relationship between the two economic superpowers.
Analysts suggest that the uncertainty surrounding trade policy has led to sharp market swings, influencing commodities like gold, which typically thrive during periods of instability. With the world’s two largest economies locked in a trade war, global investors are increasingly turning to gold as a safeguard.
Dubai, a key global hub for gold trading, often experiences swift local market reactions to international developments. With current trends showing strong demand, residents and investors alike are watching prices closely, hoping to take advantage of the volatility.
As the geopolitical situation continues to evolve, experts predict that gold prices could remain unpredictable in the near term, potentially offering both risks and rewards for investors in the UAE and beyond.
