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Dubai gold prices jump to a new all-time high

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Gold prices surged almost Dh3 per gram to reach unprecedented levels during the market opening in Dubai on Wednesday. 


At 9am UAE time the price of 24K gold bullion reached Dh344 per gram after a Dh1.50 increase while 22K started trading at Dh320.25 per gram following a Dh2.75 increase. 


The 21K and 18K gold variants had higher trading values at Dh307 and Dh263 per gram respectively. 

The price of gold hit its peak value of $2,854.86 per ounce which rose by 0.43 per cent because Beijing imposed tariffs on US imports as a response to new US duties on Chinese goods sparking fears of a trade war between the US and China. 

Senior market analyst Rania Gule stated that fears of economic consequences from President Trump's tariffs strengthen gold's position as a safe-haven investment. 


“In this context, the key question remains: Will gold surpass its record highs once more or will economic pressures cause it to pull back? The recent decision by Trump to suspend tariffs on Mexico and Canada following a border security deal has restored investor confidence in traditional markets which resulted in a modest rise in risk appetite according to her analysis. 

Investors moving toward riskier investments create pressure on gold and decrease its status as a safe haven. The Federal Reserve's tougher monetary policy stance has led to increased US bond yields which strengthens the dollar and places additional downward pressure on gold prices. 

According to Gule the supportive elements for gold remain strong against these negative factors due to inflation concerns originating from Trump's protectionist policies. 


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