UAE Gold Prices Rise by AED4.25 Amid Growing Global Trade War Concerns
Gold prices surge globally and in the UAE, driven by concerns over tariffs and inflation
Gold Prices Rise Amid Trade War Fears and U.S. Inflation Data
Gold prices rose significantly on Thursday, as concerns over US President Donald Trump’s tax policies raised fears of a global trade war. Investors also awaited key US economic data.
In the United Arab Emirates, gold prices followed the global trend, with 24-karat gold rising AED4.25 to AED351.75 and 22-karat gold rising AED3.75 to AED327.25.21-karat gold and 18-karat gold rose to AED313.75 and AED269, respectively.
Globally, gold prices rose 0.63% to $2,920.16 an ounce after hitting a record high of $2,942.70 earlier this week. U.S. gold futures rose 0.67% to $2,948.37.
Trade war fears lift gold prices
Gold prices rose on fears of a global trade war.
President Trump’s plan to impose reciprocal tariffs on countries charging duties on U.S. imports has sparked concerns of escalating trade tensions, traditionally boosting demand for gold as a safe-haven asset.
Trump’s executive orders earlier in the week imposing tariffs on steel and aluminum from Mexico, Canada, and the EU added to these concerns. China’s retaliatory tariffs on US goods have worsened the situation and increased the attraction for gold.
US inflation data boosts demand for gold
Inflation in the US also played a role in the rise in gold prices. The Consumer Price Index (CPI) rose 0.5% in January, the highest since August 2023, pushing the CPI up to 3% year-on-year. A 0.4% monthly increase in the core CPI—which does not include food and energy—indicates that inflationary pressures are still present.
Jerome Powell, the chair of the Federal Reserve, indicated that interest rate reductions would be postponed until inflation reaches the 2% objective again. Gold’s ability to fend off inflation has increased demand for it, but growing interest rates may lessen its appeal.
Gold leads other precious metals
Other precious metals also saw gains. Palladium rose 1.31% to $986.35, platinum rose 0.16% to $994.10, and spot silver rose 0.34% to $32.33 an ounce.
Prices are expected to rise as long as there is strong demand for gold and other precious metals due to inflation and trade war concerns.
