Gold prices in the UAE went up sharply on Thursday morning after new tariff warnings from US President Donald Trump. This has created fear in global markets and pushed investors to buy gold for safety.
In Dubai, the price of 24-karat gold rose by Dh2.5 per gram to Dh400.25. Other gold types also went up: 22K is now Dh370.75, 21K is Dh355.50, and 18K is Dh304.50 per gram.
The rise in local prices follows global gold prices, which reached $3,323.59 per ounce — up 0.33%. Investors around the world are buying gold due to fear and uncertainty about the global economy.
Trump’s Trade Threats Create Tension
President Trump announced new tariffs (import taxes) of 25% on goods from Japan and South Korea, and 25–40% on products from 12 other countries, including small Asian economies and South Africa.
He also announced a 50% tariff on copper and other goods from Brazil, starting August 1, 2025. These sudden announcements made global markets nervous and caused gold prices to jump.
Why People Are Buying Gold
Gold is seen as a safe investment in difficult times. When people are unsure about the economy or politics, they often buy gold to protect their money.
Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, said, “We expect more tariffs to come. There is a lot of uncertainty, and markets will likely stay unstable. But this doesn’t mean a trade war will start again.”
He also said that while tariffs will stay higher than before, they may not hurt the economy enough to cause a recession. “The US consumer is strong, and supply chains are adjusting,” he said.
UAE Gold Market Responds Fast
In the UAE, gold prices are closely linked to global prices. The jump to Dh400 per gram for 24K gold is one of the highest this year.
Shops in Dubai’s Gold Souk and malls have seen more people coming in to buy. Both tourists and locals are trying to buy before prices rise further.
“Every time there is global trouble, gold demand goes up,” said a trader at Deira Gold Souk. “People want to invest in something safe. If this continues, gold prices could rise even more.”
What’s Next?
With new trade tensions and the US pushing for higher import taxes, experts think gold will remain in demand. Prices may stay high or go even higher.
In the UAE, gold buyers and traders should keep an eye on official price updates. Some people may wait, hoping prices will go down. But many others will choose to buy now, especially with wedding and festival seasons coming.
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