Gold prices rose on Thursday amid renewed safe-haven demand after U.S. President Donald Trump announced an additional 25 percent tariff on Indian imports, further escalating trade tensions.
In Dubai, gold rates saw an uptick, with 24-carat gold rising by AED0.5 to AED407 and 22-carat gold increasing by AED0.75 to AED377. Furthermore, 21-carat gold climbed AED0.5 to AED361.25, while 18-carat gold gained AED0.5, reaching AED309.75.
Globally, spot gold rose 0.20 percent to $3,378.55 as of 4:45  GMT. Meanwhile, U.S. gold futures rose 0.37 percent to $3,446.22.
Trade-related announcements support bullion
Gold remains attractive as a safe-haven asset amid renewed tariff threats from Trump, with prices approaching the key psychological level of $3,400. Risk assets continue to experience volatility due to the persistent trade-related announcements from the White House.
On Wednesday, Trump intensified trade tensions with India by imposing an additional 25 percent tariff on Indian imports, citing its continued purchases of Russian oil.
This new duty, which will take effect 21 days after August 7, will raise tariffs on some Indian exports to as much as 50 percent—among the steepest imposed on any U.S. trading partner.
U.S. dollar index hovers near one-week low
Gold prices also found further support as the U.S. dollar index hovered near a one-week low, pressured by unexpectedly weak U.S. jobs data that revived expectations of a potential Federal Reserve rate cut in September. A softer dollar typically makes gold prices more affordable for international buyers.
Traders are now overwhelmingly expecting a rate cut from the Federal Reserve next month, with the CME Group’s FedWatch Tool showing a 94% probability of a 25-basis point reduction.
Minneapolis Fed President Neel Kashkari noted that while the inflationary impact of recent tariffs remains uncertain, the central bank may need to act soon to support the slowing U.S. economy.
Gold, which typically benefits in times of economic or political uncertainty and in low-interest-rate environments, continues to attract investor interest.
Read: Crude oil prices climb to $67.55 on strong U.S. demand as tariff concerns persist
Other precious metals
As gold prices rose, the precious metals market was largely positive. Spot silver rose 0.47 percent to $38.03, while platinum dipped 0.28 percent to $1,329.85. However, palladium surged 1.27 percent to $1,146.50, and copper held steady at $4.39.
