Gold prices in Dubai saw a dip on Tuesday morning following a record surge on Monday.
The price of 24K gold fell by Dh2 per gram, opening at Dh351.25 per gram, while 22K gold dropped by Dh1.75 per gram, settling at Dh327. Other variants, including 21K and 18K, also opened lower, priced at Dh313.5 and Dh268.75 per gram, respectively.
On the global front, gold was trading at $2,916.66 per ounce, marking a 0.35% increase as of 9:15 AM UAE time. Earlier, the metal had hit a record high of $2,939.8 per ounce.
Gold prices have surged recently due to concerns triggered by US President Donald Trump’s announcement of a 25% tariff on aluminum and steel, raising fears of a potential escalation in global trade tensions.
Joe Maher, an assistant economist at Capital Economics, commented that precious metals have been among the strongest-performing assets of 2025 so far. He noted that despite this, traditional drivers of gold prices, such as the strength of the dollar and real yields, have not been significant contributors.
“The inverse relationship between the 10-year US TIPS yield and the price of gold has been weaker than usual for some time,” Maher explained.
He further suggested that gold’s recent price rally may be driven by investor fears of a trade war, as concerns grow that gold could be affected by future tariffs. This uncertainty may have led US investors to stock up on gold to prepare for potential disruptions to US gold imports, partly explaining the increased gold stockpiling on the Comex exchange in the United States.
