Dubai gold prices hit Dh407 as tariff tensions boost global demand
Global prices rise as Trump announces fresh tariffs on Indian imports
DUBAI: Gold prices in Dubai continued their upward trajectory on Thursday, with the 24K variety reaching Dh407 per gram, up from Dh406.50 on Wednesday. This marks a weekly gain of Dh2.25 compared to Dh404.75 on Monday.
The 22K gold rose to Dh377, higher than Wednesday’s Dh376.25 and Dh376 on Tuesday.
Meanwhile, 21K gold stood at Dh361.25, slightly up from Dh360.75. The 18K variety climbed marginally to Dh309.75 after dipping to Dh309.25 a day earlier.
What’s driving global trends?
Globally, spot gold rose 0.3% to $3,378.18 per ounce in early trading, while US gold futures gained 0.4% to $3,445.60. The rise follows the announcement of a new 25% US tariff on Indian imports, intensifying trade tensions between Washington and New Delhi.
The tariffs, set to take effect 21 days after August 7, could push total duties on certain Indian goods to 50%. Additionally, a 100% tariff on imported semiconductors was also revealed, though exemptions apply to US-based manufacturing.
These developments, coupled with soft US employment data last week, have lifted demand for gold as a safe-haven asset.
How is the dollar responding?
The dollar index remains weak, hovering near its lowest point in over a week. This softness is attributed to rising expectations of a US interest rate cut in September. According to CME’s FedWatch Tool, traders are pricing in a 95% chance of a 25 basis point cut.
Such an environment typically favours gold, which performs well in low-rate conditions and during geopolitical uncertainty.
Where do other precious metals stand?
In the precious metals space, spot silver climbed 0.5% to $38.04 per ounce. Palladium also posted gains, rising 1.3% to $1,146.80. However, platinum fell 0.4% to $1,328.77.