Gold Prices Crash in UAE After Tariffs
Gold Prices Plummet in UAE After Trump's New Tariffs - What's Next?
The gold market has shown significant fluctuations in recent days after the President of the United States announced new 10% trade tariffs. The new tariff measures have prompted immediate reactions from investors worldwide, and they have had a particularly strong impact on gold, considered by many as a safe haven during economic uncertainty.
Record-High Price on the International Stage
On Thursday, gold reached an all-time high on international markets, soaring to $3,167.57 per ounce. This sudden jump is clearly linked to the announced U.S. tariffs, which have raised heightened concerns about the future of global trade.
What Happened in Dubai?
The UAE gold market also quickly reacted to international trends. Prices rose in the morning but experienced a sharp decline throughout the day. According to data from the Dubai Jewellery Group, the price of 24-karat gold opened at 378.25 dirhams per gram and fell to 373 dirhams by the end of the day. A similar trend was observed in 22-karat gold, which started at 350.25 dirhams and later dropped to 345.50 dirhams.
Among other available purity grades:
21K gold was priced at 336 dirhams in the morning, decreasing to 331.25 dirhams by evening,
while the price of 18K gold fell from 288 dirhams to 284 dirhams per gram.
What's Behind the Drop?
Several factors may be behind the sudden price drop. Firstly, investors initially turned to gold in response to the tariff news, causing prices to spike. However, in later trading, many began profit-taking, and with waning speculative purchases, prices corrected.
Additionally, the market is now waiting and watching for further steps by the United States and how major trading partners, particularly China and the EU, will react.
What's Expected in the Near Future?
Experts believe that demand for gold may remain strong, especially if geopolitical tensions or trade wars escalate further. In the UAE market, this could lead to price increases, mainly if investors seek safe assets for the long term.
However, gold prices will also be influenced by the strengthening or weakening of the U.S. dollar, inflation expectations, and central bank interest rate policies.
What Should Buyers in Dubai Consider?
Due to the daily changes in gold prices, it's wise to follow the official data from the Dubai Jewellery Group daily, especially if one plans to purchase a larger quantity of jewelry or investment gold. Dubai's famous gold market, the Gold Souk, often offers competitive prices, but timing is crucial.
Those thinking long-term might consider taking advantage of the price correction now. However, expect some short-term uncertainty and fluctuations.
Summary
The announcement of U.S. tariffs has moved the global gold market, quickly reflecting in Dubai's gold prices. Although prices reached an all-time high, they experienced significant decline by the end of the day. Investors and buyers should stay alert, as the coming weeks could again bring volatile movements in the precious metal market—particularly in an international trading hub like Dubai.
(Source: Dubai Jewellery Group statement.)
