Gold prices saw a notable rise, reaching a two-week high due to growing concerns over U.S. President Donald Trump’s tariff proposals, which increased interest in the precious metal. Investors are also keenly observing the forthcoming Federal Reserve policy meeting, anticipated to impact market dynamics.
In Dubai, gold rates witnessed remarkable growth. The price of 24-carat gold rose by AED8.00, reaching AED406.50. Similarly, 22-carat gold gained AED7.75, bringing its value to AED376.50. Additionally, 21-carat gold saw an increase of AED7.50, now priced at AED361.00, while 18-carat gold climbed AED12.50 to AED309.50.
As of 02:24 GMT, spot gold was up 1.4 percent, trading at $3,380.92 per ounce (currently at $3,360.46) after hitting its highest level since April 22 earlier in the day. U.S. gold futures also rose by 2 percent, reaching $3,389.90 (currently at $3,368.55).
According to reports, gold prices have shown a robust increase at the beginning of the week, with investors favoring this safe-haven asset to mitigate portfolio volatility amid renewed tariff concerns from U.S. President Donald Trump. Recently, Trump announced a 100 percent tariff on films produced overseas, though he provided limited details on the implementation of such a measure. He also indicated plans to announce pharmaceutical tariffs within the next two weeks.
Fed interest rate decision on the horizon
This week, attention is focused on the Federal Reserve’s interest rate decision, with Fed Chair Jerome Powell set to deliver comments on Wednesday that may provide insight into the central bank’s rate trajectory. The Fed has maintained its policy rate in the range of 4.25 percent to 4.50 percent since last December.
Market analysts suggest that any dovish signals from the Fed could bolster gold prices further, reinforcing its overall upward momentum. A recent Reuters report indicated that the Fed is likely to keep interest rates unchanged, but the meeting may be particularly significant given the uncertainty surrounding Trump’s tariffs and their potential impact on the economic outlook.
Goldman Sachs noted that Fed officials will likely seek concrete evidence from labor market data and other indicators before making any cuts. They predict that this process could take a couple of months, expecting three rate cuts of 25 basis points each in July, September, and October.
Read more: Dubai’s 24-carat gold prices up AED3.50; global rates rise on weaker dollar
Other precious metals show gains
In addition to gold, other metals also saw positive movement. Spot silver increased by 1.5 percent to $32.99 per ounce, while platinum rose by 1.3 percent to $971.24, and palladium advanced by 0.5 percent to $945.75.
