emirates7 - Gold prices in Dubai declined on Wednesday morning, following a surge that pushed them to nearly a four-week high the previous day.
The price of 24-carat gold dropped to Dh404.5 per gram, down from Dh406, after rising by more than Dh10 on Tuesday. Other variants also saw a decrease, with 22-carat priced at Dh374.5, 21-carat at Dh355, and 18-carat at Dh307.75 per gram.
On the global front, spot gold remained relatively stable, trading at $3,354.59 per ounce, a modest 0.07% increase, as market sentiment remained cautious amid ongoing uncertainty about the US-China trade agreement.
Rania Gule, senior market analyst for MENA at XS.com, noted that gold prices are undergoing significant volatility, briefly approaching the $3,400 per ounce mark before easing at Tuesday’s opening.
She clarified that this minor retreat doesn’t suggest a loss of upward momentum, but rather a technical pause in a broader bullish trend driven by several critical factors — including rising geopolitical tensions, ongoing trade disputes, and the potential for shifts in US Federal Reserve policy. Gold, she added, remains a strong safe-haven investment, and the current dip could present medium-term buying opportunities rather than signal a sustained decline.
The renewed market unease was triggered by former US President Donald Trump’s announcement of plans to raise tariffs on steel and aluminium imports to 50 per cent. This move has reignited fears of a renewed trade war, particularly with China and potentially other nations.
Gule emphasized that the market response goes beyond just the tariff figures — it’s also about the political implications behind such decisions. With trade relations becoming increasingly uncertain, investor interest in gold as a protective asset is likely to stay strong, even if prices fluctuate in response to the US dollar's movements.
The price of 24-carat gold dropped to Dh404.5 per gram, down from Dh406, after rising by more than Dh10 on Tuesday. Other variants also saw a decrease, with 22-carat priced at Dh374.5, 21-carat at Dh355, and 18-carat at Dh307.75 per gram.
On the global front, spot gold remained relatively stable, trading at $3,354.59 per ounce, a modest 0.07% increase, as market sentiment remained cautious amid ongoing uncertainty about the US-China trade agreement.
Rania Gule, senior market analyst for MENA at XS.com, noted that gold prices are undergoing significant volatility, briefly approaching the $3,400 per ounce mark before easing at Tuesday’s opening.
She clarified that this minor retreat doesn’t suggest a loss of upward momentum, but rather a technical pause in a broader bullish trend driven by several critical factors — including rising geopolitical tensions, ongoing trade disputes, and the potential for shifts in US Federal Reserve policy. Gold, she added, remains a strong safe-haven investment, and the current dip could present medium-term buying opportunities rather than signal a sustained decline.
The renewed market unease was triggered by former US President Donald Trump’s announcement of plans to raise tariffs on steel and aluminium imports to 50 per cent. This move has reignited fears of a renewed trade war, particularly with China and potentially other nations.
Gule emphasized that the market response goes beyond just the tariff figures — it’s also about the political implications behind such decisions. With trade relations becoming increasingly uncertain, investor interest in gold as a protective asset is likely to stay strong, even if prices fluctuate in response to the US dollar's movements.