UAE gold prices hit record high: Why yellow metal will rise further past $3,000
Analysts said that the US tariffs row and geopolitical development across the world will push gold prices to scale new record high with investors buying into the safe-haven metal.
As investors flew into safe-haven assets to cover loss from US President Donald Trump’s tariff war, the yellow metal reached the new maximum of $3000 per ounce on Friday.
Last October, gold prices could reach $3,000 in Q1 2025 on geopolitical tensions, interest-rate cuts, and central banks buying.
Gold last weekend ended at $2,986.65 an ounce, a gain of 0.23 percent. 24K gold reached an all-time high in Dubai, with prices hitting Dh360 on Friday. 75, 22K at Dh335. 75 per gram, 21K at Dh322. 0 and 18K at Dh276. 0 per gram. Meanwhile, gold prices, which have been closed a bit lower last week at 24K at close to Dh359. 5, 22K at Dh334. 5, 21K at Dh320. 75 and 18K at Dh275. 0 per gram.
Gold is leveraged to concerns about the stability of the US economy,” he said. Joseph Dahrieh, managing principal at Tickmill said, "A cooling labour market and easing inflation might tip the Fed [into a dovish position at the next meeting which] could send gold prices to new highs."
In the most recent round of the tariff fight, Trump threatened a 200 percent tariff on European Union-based alcohol such as champagne and wine.
Dahrieh said: "In the wake of back and forths on tariffs all week, market uncertainty really ramped up when President Trump announced a 200 per cent tariff on European alcoholic imports driving risk-off sentiment and safe-haven demand for gold."
Recent tariff threats are also crucial to the rally in the precious metal, said Ahmad Assiri, research strategist at Pepperstone, as the White House threatens a potential further escalation of up to 200 per cent of tariffs on specific products imported from Europe. On April 2, the US is also expected to impose tariffs on both Canada and Mexico, as well as retaliatory tariffs.
That adds to uncertainty over US and broader global economic growth statistics, making gold a go-to hedging means for investors. Gold, also offered firm support from weakened US dollar due to shaken image of US exceptionalism amid growing concerns over long-term growth outlook coupled with a drag on its technical pushing up a new round of trade impasse. The dollar below the 104 track provides momentum for the metal, making it more attractive to foreign investors,' Assiri said.
But Tickmill's Joseph Dahrieh warned that a dovish US Fed tone due to inflation pressure from the "undaunted trade tensions" might cap the gold rally.
Geopolitical developments are also a key market driver. A ceasefire between Ukraine and Russia is another factor that could bolster investor sentiment and thus push gold lower in its bullish trend. Dahrieh said, "The agreement is still in the air of uncertainty, with Russian President Vladimir Putin keeping the doors of uncertainty open with a statement that would push the price of gold up once again."
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