Dubai gold price surges past Dh400
Global rate climbs to two-week high, Fed decision in sharp focus
DUBAI: Gold prices in Dubai climbed above Dh400 per gram once again on Tuesday, with the yellow metal recording a near Dh15 increase in just over 24 hours.
Demand for gold surged as investors reacted to ongoing geopolitical uncertainty, fresh tariff threats from the United States, and anticipation surrounding the Federal Reserve’s interest rate decision this week.
At market open in Dubai, 24-carat gold was priced at Dh405.25 per gram, a sharp rise from Dh399 on Monday. Over the weekend, the same variant closed at Dh390.5 per gram. Other categories also witnessed gains – 22-carat opened at Dh375.25, 21-carat at Dh360, and 18-carat at Dh308.5 per gram.
Safe-haven boost
Globally, spot gold rose 1.4% to $3,360.46 per ounce, after touching a two-week high of $3,381.37 earlier in the session, according to Reuters. US gold futures climbed 2% to $3,389.20. This uptrend is largely driven by renewed demand for safe-haven assets amid tariff-related uncertainties triggered by US President Donald Trump’s recent policy moves.
Trump announced a 100% tariff on foreign-produced movies and hinted at more levies, particularly on pharmaceuticals, within the next two weeks. The lack of clarity surrounding these proposals, coupled with the ongoing stalemate in US-China trade negotiations, has kept investor sentiment cautious.
Rate cut anticipation
Market attention now turns to Wednesday’s US Federal Reserve meeting, with Chair Jerome Powell’s comments expected to influence the trajectory of gold prices. While the Fed is likely to hold interest rates steady, traders are pricing in 75 basis points of rate cuts by year-end, according to LSEG data.
In Dubai, gold’s rally has brought it within Dh5 of its 30-day high. On April 21, 22-carat gold peaked at Dh381.5, with a brief spike to Dh388. The recent surge marks a Dh45.50 difference from the April 7 rate of Dh331 per gram, potentially impacting retail jewellery sales as price volatility continues to unsettle shoppers.
Precious metals rise
Silver, platinum and palladium also saw gains. Spot silver advanced 1.6% to $33.01 per ounce, platinum climbed 1.6% to $974.28, and palladium rose 1% to $950.38.