Dubai gold: 24-carat hits Dh402.75 amid US fiscal uncertainty
Weekly gold prices gain 1.8% after recent two-week decline
DUBAI: Gold prices climbed on Friday, rebounding from sharp losses the previous day, driven by renewed global trade tensions and mounting concerns over the US fiscal outlook.
In Dubai, gold rates saw an upward adjustment, with 24-carat gold rising Dh1 to Dh402.75 per gram. The 22-carat variety also rose Dh1, reaching Dh372.75, while 21-carat and 18-carat gold increased to Dh357.50 and Dh306.25 respectively.
Globally, spot gold increased by 0.5% to $3,341.34 an ounce, while August gold futures edged up 0.2% to $3,349.52 per ounce during early morning trading. Despite a 1% drop on Thursday following stronger-than-expected US jobs data, gold is on track for a weekly gain of 1.8%, reversing a two-week losing streak.
Tariff tensions build
President Trump announced on Thursday that formal letters outlining new US export tariffs will be dispatched to major global economies. These new tariffs, ranging from 20% to 30%, will be applied unilaterally, bypassing negotiations with over 170 countries. So far, the US has only concluded deals with the UK, Vietnam, and a partial agreement with China. The prospect of escalating trade tensions has supported safe-haven demand for gold.
Jobs report shifts outlook
While tariffs boost gold’s appeal, the metal faced pressure after the latest US employment figures showed stronger-than-anticipated hiring in June. This data reduced the probability of an interest rate cut by the Federal Reserve in July, a factor that typically weighs on gold since higher interest rates increase the opportunity cost of holding non-yielding bullion.
Currency and metal moves
The US Dollar Index slipped 0.1% during Asian hours, slightly off the previous day’s strong performance. In other precious metals, platinum futures rose by 0.5% to $1,385.80 per ounce, while silver futures dipped 0.3% to $37.00 per ounce. Industrial metals were also mixed: benchmark copper on the London Metal Exchange eased by 0.3% to $9,923.65 per ton, while US copper futures declined by 0.4% to $5.115 per pound.