Gold prices maintained their stability on Wednesday as investors looked forward to significant trade developments between the United States and its trading partners, alongside critical U.S. inflation data that could provide insights into the Federal Reserve‘s future policy direction.
In Dubai, gold rates saw a slight decrease, with 24-carat gold dropping by AED0.75 to a price of AED398.50. Similarly, 22-carat gold fell by AED0.75, bringing its value down to AED369.00. In addition, 21-carat gold experienced a reduction of AED0.5, settling at AED354.00, while 18-carat gold declined by AED0.75, now priced at AED303.25.
Spot gold remained steady at $3,318.79 per ounce as of 0027 GMT, while U.S. gold futures decreased by 0.2 percent to $3,328.50.
U.S. trade policies impacting markets
U.S. President Donald Trump recently signed two executive orders aimed at alleviating the impact of his auto tariffs, introducing a combination of credits and relief from various material levies. Trump’s trade team also highlighted its first agreement with a foreign trading partner, which helped to reduce investor concerns regarding his unpredictable trade strategies. Bullion, regarded as a safeguard against political and financial instability, previously surged to an all-time high of $3,500.05 per ounce on April 22 due to heightened uncertainty.
Read more: Dubai gold prices up AED5, global rates hold above $3,300
Consumer confidence and economic outlook
Meanwhile, U.S. consumer confidence dipped to its lowest point in nearly five years in April, as rising concerns over tariffs negatively affected the economic outlook. Market participants are eagerly awaiting economic indicators, including the U.S. personal consumption expenditures price index, scheduled for release later today, and the non-farm payrolls report on Friday. These data points will further illuminate the repercussions of the latest tariffs on the Federal Reserve’s interest rate projections.
Currently, traders anticipate approximately 97 basis points worth of rate cuts by the end of 2025.
Precious metal price fluctuations
Spot silver saw a modest increase of 0.1 percent, reaching $33.00 per ounce, while platinum decreased by 0.1 percent to $976.69, and palladium rose by 0.2 percent to $936.36. Gold prices experienced a decline on Tuesday as the easing of trade tensions between the U.S. and its trading partners reduced the metal’s appeal as a safe haven. Investors are now closely monitoring U.S. economic data, which will shed light on the Federal Reserve’s policy trajectory.
In Dubai, gold rates noted an uptick, with 24-carat gold rising by AED5.00 to a total of AED400.75. Likewise, 22-carat gold increased by AED5.25, elevating its price to AED371.25. Additionally, 21-carat gold saw a rise of AED25.25, reaching AED356.00, while 18-carat gold climbed by AED4.25, now priced at AED305.00.
As of 02:11 GMT, spot gold had decreased by 0.4 percent to $3,329.12 per ounce, and U.S. gold futures fell by 0.2 percent to $3,342.40. Currently, spot gold stands at $3,314.97.
Optimism amid trade tensions
“The risk environment has clearly improved recently, with market participants buoyed by optimism that the worst of the trade tensions may be behind us amid encouraging rhetoric around trade deals,” reported Reuters, citing IG market strategist Yeap Jun Rong.
U.S. Treasury Secretary Scott Bessent indicated on Monday that several key trading partners had presented “very good” proposals aimed at circumventing U.S. tariffs, with India likely to be among the first to finalize an agreement. Furthermore, Bessent noted that China’s recent decision to exempt certain U.S. goods from its retaliatory tariffs demonstrated a willingness to ease trade tensions.
In a related move, the Trump administration plans to mitigate the effects of automotive tariffs by reducing some duties on foreign parts used in domestically manufactured vehicles.
