Gold prices surged in Dubai, reaching a new all-time high as they jumped nearly Dh3 per gram at the market’s opening on Wednesday. At 9 am UAE time, the price of 24K gold rose by Dh1.50, reaching Dh344 per gram. Meanwhile, 22K gold also saw an increase, opening at Dh320.25 per gram after rising Dh2.75 per gram. Other gold variants, including 21K and 18K, were trading at Dh307 and Dh263 per gram, respectively.

Globally, gold was priced at a record $2,854.86 per ounce, an increase of 0.43 percent. This rise is attributed to rising worries about a potential trade war between the United States and China, particularly after China imposed tariffs on US imports in retaliation to new US duties on Chinese goods. Rania Gule, a senior market analyst at XS.com, highlighted that these economic concerns provide strong support for gold as a safe-haven asset.

In her analysis, Gule pointed out that the critical question is whether gold can surpass its previous highs or if economic pressures will lead to a decline. She noted that President Donald Trump’s decision to suspend tariffs on Mexico and Canada, following an agreement on border security, has improved investor confidence in traditional financial markets, resulting in a slight increase in risk appetite. However, this shift toward riskier assets has diminished gold’s appeal as a safe haven. Additionally, Gule mentioned that the Federal Reserve’s more hawkish stance has contributed to rising US bond yields, which in turn supports the dollar and adds further negative pressure on gold prices.

Despite these challenges, Gule emphasized that the supportive factors for gold, particularly inflation concerns linked to Trump’s protectionist policies, continue to create resistance against the negative influences affecting gold prices.