Prices for Dubai gold have shot up above Dh400 per gram in the last few days and are also hitting fresh highs on the upper price band. The increase follows after the metal soared past $3,340 an ounce internationally.
In Dubai, 24k gold was priced at Dh402. 75 per gram. Gold of the same price category—22k,21k, and 18k gold—becomes more expensive by Dh372. 75, Dh357. 5, and Dh306. 5 per gram, respectively.
Internationally, spot gold increased 3.72% to $3,342.22 an ounce. The former is essentially attributable to trade tariffs, with the latter resulting from the relative weakness of the dollar.
Factors that Affect the Price of Gold
Saxo Bank said there are many reasons why gold has captured much greater attention over the past couple of years. That last one is partly due to perennial demand from central banks, partly due to the cycle of Fed interest-rate hikes hitting their pauses, the newly found attention on the soaring government debt, and partly due to the government fiddling with things such as sanctions, export restrictions, tariffs, and so on. Recent worries about a recession, inflation, and US trade tariffs have also supported the price of gold.
And take note — unlike sovereign bonds, which may be politicized, or currencies, which may be affected by trade ties and alliances, gold, and other precious metals would be politically agnostic on the same score, I think. They are accepted on a universal basis and are not pegged based on the credit rating of any single country. That’s a significant factor behind record levels of demand for gold from private, institutional, and central banks alike, the financial institution mentioned.
Other Key Insights
Plummeting the US Dollar equates to many investors looking into other currencies to invest in.
Samira Farzad, head of business development at HF Quarters, said hedge funds and asset managers have repositioned themselves to add to their net long Japanese yen positions on the latest developments.
“That is the most bullish arrangement for leveraged funds towards the quality share relative to the yen since early 2021, although asset managers have carried long positions into record territory today. That sentiment has shifted as US tariffs on imports add to fears about global economic stability. The continuing US-China escalation also enhances the yen’s safe-haven status. So, this environment means a happy place for risk aversion for the yen,” Farzad also wrote.
The Regional Economic Impacts
On one line-up, Indian gold producers need to be capable of aiming at Dubai for several of the best explanations throughout this ongoing tariff uncertainty.
