Gold prices in Dubai experienced a drop on Tuesday morning following a record spike the previous day. On Tuesday, 24K gold saw a decrease of Dh2 per gram, starting at Dh351.25 per gram. Similarly, 22K gold fell by Dh1.75 per gram, settling at Dh327. Other variants, including 21K and 18K, also opened lower, priced at Dh313.5 and Dh268.75 per gram, respectively.
Globally, gold was trading at $2,916.66 per ounce as of 9:15 AM UAE time. This marked a slight increase of 0.35%. Earlier, the precious metal had reached a historic high of $2,939.8 per ounce.
Gold prices have risen recently, largely due to growing concerns stemming from US President Donald Trump’s announcement of a 25% tariff on aluminum and steel imports. The announcement has sparked fears of an escalating trade war, which in turn has influenced the surge in gold prices.
Joe Maher, an assistant economist at Capital Economics, noted that precious metals, including gold, have been some of the best-performing assets of 2025. However, he pointed out that traditional factors that typically affect gold prices, such as the strength of the US dollar and real yields, have not had a significant impact recently.
Maher further explained that the usual inverse relationship between the 10-year US TIPS yield and the price of gold has weakened in recent times. He suggested that the recent surge in gold prices may be largely driven by investor concerns about a potential trade war. As fears rise about future tariffs affecting gold, US investors are reportedly stockpiling gold as a precautionary measure. This has contributed to increased gold inventories on the Comex exchange in the United States.
As the global trade situation remains uncertain, gold continues to be seen as a safe haven for investors, reflecting the ongoing volatility in financial markets.
