Gold Prices Soar in Dubai Post-Tariff Freeze

Gold Price Surge in Dubai: Over 10 Dirham Rise Post Trump Tariff Suspension

Global markets are experiencing turmoil once again after the United States suspended heightened tariffs for 90 days. The decision has had an immediate impact on international stock and commodity markets, including one of the most sensitive sectors, gold. In Dubai, the price of gold rose more than 10 dirhams per gram in just one day.

Spectacular Price Increase in Dubai's Gold Market

According to the official data from the Dubai Jewellery Group, the price of 24-karat gold opened at Dh376.5 per gram on Thursday morning, marking a Dh13.5 rise from the previous day's opening price of Dh363. The price of 22-karat gold jumped to Dh348.75, up from Wednesday's Dh336. The 21-karat version sold for Dh334.5, while 18-karat gold was priced at Dh286.5, with the former up Dh12.25 and the latter Dh10.25 from prior opening prices.

This jump is particularly noteworthy given that precious metals are traditionally considered a safe haven during times of economic uncertainty. Investors globally are rushing to convert their capital into gold whenever political or economic decisions pose risks.

What's Behind the Move?

The unexpected market movement was triggered by the US President's announcement of a 90-day suspension on previously planned 'reciprocal' tariff hikes. Simultaneously, the US drastically increased tariffs on China to a level of 125 percent. For other economies, a general 10 percent tariff currently applies.

The decision's impact was instantly felt on financial markets. Wall Street indices surged sharply: the S&P 500 closed up 6 percent at 5,281.44 points, breaking a weak streak that began the previous week. The Nasdaq Composite jumped 7.6 percent, while the Dow Jones Industrial Average strengthened by 5.51 percent at the start of afternoon trading.

What Does This Mean for UAE Residents and Investors?

Dubai's gold market is extremely popular not only among local residents but also tourists and foreign investors. Buying gold here is not just an aesthetic decision but often an investment, especially during price fluctuations. Such sudden increases in prices indicate that those who purchased gold earlier could now realize significant profits.

However, higher prices could dampen the purchasing appetite, particularly among those seeking gold for gifts—for example, during weddings or holidays. Therefore, many are closely watching to see if the increase will be sustained or if the market will correct in a few days.

Outlook and Advice

As long as global tariff war sentiment persists and economic actors react to unpredictable political decisions, gold will remain volatile. UAE residents and investors should keep an eye on international news, especially developments in US-China relations, as these will continue to be decisive for precious metal prices.

Those planning to buy in Dubai are advised to compare offers from multiple stores, as prices may vary slightly between dealers. Those considering selling might find this an opportune time to part with their gold stocks at a favorable price.

(Source: Data from The Dubai Jewellery Group.)