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Gold prices in UAE plummet after Trump announces 10% trade tariffs
Internationally, the yellow metal hit an all-time high of $3,167.57 per ounce on Thursday
Gold prices in the UAE could rise up this year on the back of new tariffs that US President Donald Trump rolled out of Wednesday, according to experts.
On the international market, the yellow metal hit record highs early on Thursday.
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“Gold is often considered a safe-haven investment during times of economic uncertainty or geopolitical tension” said Nishin Thaslim, chairman of Morickap Group of Companies. “If tariffs lead to trade wars or slow down global economic growth, investors may flock to gold, driving up its price.”
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On Thursday, gold prices in the UAE rose before falling sharply during the day.
The Dubai Jewellery Group data showed 24K opening at Dh378.25 per gram while 22K was selling at Dh350.25 per gram in the morning. Later in the day, 24K was selling at Dh373 per gram while 22K stood at Dh245.50 per gram. Among the other variants, 21K and 18K opened at Dh336 and Dh288 per gram, before falling to Dh331.25 and Dh284 respectively.
Internationally, gold hit an all-time high of $3,167.57 per ounce. The rates fell a little as the day progressed.
John Paul Alukkas, Managing Director of Joyalukkas International Operations, said that UAE being a “major hub” for the trade of the yellow metal, was feeling the “ripple effects” of global market reactions.
“Domestic gold prices have climbed in tandem with international rates, influenced by the increased demand for safe-haven assets,” he said. “UAE buyers can anticipate higher gold prices in the short term, mirroring global trends.”
Market volatility
On Wednesday, Trump unveiled a series of measures including a 10 per cent baseline tariff on all imports to the US and higher duties on several countries, including some of its biggest trading partners. The tariffs also include duties on GCC countries, with 10 per cent on the UAE and Saudi Arabia, and 20 per cent on Jordan.
According to Dilin Wu, Research Strategist at Pepperstone, the new tariffs could put “near-term pressure on gold prices” as potential retaliatory measures remain high.
“The risk of escalating trade tensions, concerns over tariffs dragging on US economic growth, and continued gold buying by emerging market central banks all suggest that gold’s longer-term trajectory remains tilted to the upside,” she said. “If trade disputes intensify, global economic confidence could take a hit, potentially reigniting safe-haven demand.”
However, others added that market volatility was still high. “US trade policies sparked economic uncertainty, pushing investors toward gold as a safe-haven asset,” said Joseph Dahrieh, Managing Principal at Tickmill. “A weaker US dollar, driven by trade tensions, further boosts gold’s value. Retaliation from nations like China could intensify global trade conflicts, enhancing gold’s appeal. However, inflationary risks could lead to a more restrictive monetary policy, which could weigh on gold.”
John added that although gold was expected to reach record highs this year, there could be corrections as well. “Analysts have adjusted their forecasts in light of recent developments with Goldman Sachs raising its end-2025 gold price forecast to $3,300 per ounce, citing stronger-than-expected ETF inflows and sustained central bank demand,” he said.
“However, some experts caution that record-high prices could face corrections in the coming years. We could see extreme volatility in both side," he added.
Nasreen Abdulla
Nasreen Abdulla is a Special Correspondent covering food, tech and human interest stories. When not challenged by deadlines, you’ll find her pulling off submissions on the jiu jitsu mats.
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