Dubai gold prices surge Dh6.25 amid global market shifts
US-China deal boosts investor confidence, alters precious metals demand
DUBAI: Gold prices in Dubai saw a sharp rise on Tuesday, with 24-carat gold increasing by Dh6.25 to Dh395.25 per gram.
The gains followed a rebound in global sentiment after the US and China agreed to reduce reciprocal tariffs, prompting a shift away from safe-haven assets and injecting energy into equities.
The international gold market, however, remained near its lowest point in over a week despite modest recovery attempts.
Dubai gold prices
In the Dubai market, 22-carat gold rose by Dh6.00 to Dh366 per gram. Meanwhile, 21-carat gold moved up Dh5.25 to Dh350.75, and 18-carat gold reached Dh300.75 after a Dh5.00 increase. These local gains came amid global prices hovering near recent lows. Spot gold steadied at $3,230.99 an ounce at 03:09 GMT after a steep 2.7% drop in the previous session, and is now trading at around $3,241.
US gold futures edged up by 0.2% to $3,235.20, later surpassing $3,250. The market response followed news that US tariffs on Chinese goods would drop from 145% to 30%, while China would reduce its duties from 125% to 10%. The truce, brokered over two days in Geneva, significantly boosted global equities and lowered gold’s traditional appeal as a haven.
Market anticipation builds
Federal Reserve Governor Adriana Kugler suggested the trade easing could lower the chance of interest rate cuts, stabilising monetary policy for now. Yet traders remain focused on the US Consumer Price Index (CPI) report, expected later today, which may provide key insights into inflation levels and future Fed decisions.
Market watchers currently forecast a 55-basis-point rate cut this year, possibly beginning in September. Lower interest rates often bolster demand for gold by reducing the opportunity cost of holding non-yielding assets.
Precious metals update
Elsewhere, spot silver rose 0.6% to $32.78 an ounce, platinum climbed 0.8% to $982.70, while palladium declined 0.4% to $942.19. Citi, meanwhile, projected continued consolidation in gold between $3,000 and $3,300, trimming its three-month price target to $3,150.