Dubai gold price rises Dh2 as spot gold hits $3,223.55
Dollar weakens, Moody’s cuts US credit rating by one notch
DUBAI: Gold prices edged higher on Monday as market volatility and renewed tariff threats from Washington intensified investor demand for safe-haven assets.
Spot gold climbed 0.7% to $3,223.55 an ounce, supported by a weaker dollar and heightened geopolitical uncertainty.
In Dubai, the price of 24-carat gold rose Dh2.00 to Dh389.75, while 22-carat gold increased Dh1.50 to Dh360.75. However, not all categories saw gains. The price of 21-carat gold declined by Dh1.50 to Dh346.00, followed by another drop of Dh1.25 to Dh296.50, reflecting mixed movement in the local market.
Meanwhile, US gold futures surged 1.3% to $3,228.70, with spot prices holding above $3,215 at 02:15 GMT.
Dollar slips further
The dollar dropped 0.3% on Monday, making greenback-denominated gold more affordable for buyers using other currencies. This softness in the dollar followed a credit rating downgrade by Moody’s, which cut the US's top sovereign rating by one notch due to growing debt concerns.
Adding to the global unease, US Treasury Secretary Scott Bessent reaffirmed that President Donald Trump would impose tariffs on trade partners unwilling to negotiate “in good faith”. The escalating trade rhetoric has reignited fears of economic instability, fuelling bullion’s ascent.
Safe-haven demand
Gold often benefits during times of political and economic uncertainty. Recent US data showed weaker-than-expected retail sales and producer prices, reinforcing bets on potential rate cuts.
Elsewhere in the precious metals market, spot silver climbed 0.5% to $32.42 an ounce, platinum edged 0.3% higher to $990.71, and palladium gained 0.5% to $965.23.