Gold prices continued their record rally on Tuesday, propelled by concerns stemming from U.S. President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell. This criticism dampened risk sentiment, leading investors toward the safe-haven bullion.
In Dubai, gold rates demonstrated significant gains, with 24-carat gold increasing AED10.75 in the past 24 hours to AED420.00. Similarly, 22-carat gold rose to AED388.75. Additionally, 21-carat gold gained AED9.50 during this period to reach AED388.75, while 18-carat gold edged up AED8.00 to AED319.50.
Spot gold and futures prices surge
Spot gold was up 1.4 percent at $$3,481 an ounce, after reaching a record high of $3,473.03 per ounce earlier in the session. U.S. gold futures firmed 1.7 percent to $3,482.40.
“Investors have been giving a wide berth to U.S. assets amid tariff worries and Trump-Powell dramas, which has kept gold in prime position to capitalise on the dollar’s woes,” Reuters reported, citing Tim Waterer, chief market analyst at KCM Trade. Trump reiterated his call for an immediate reduction in interest rates on Monday, cautioning that the U.S. economy could face a slowdown while criticizing Powell’s decision to maintain rates until there is clarity on the inflation impact of Trump’s tariff plans.
Read more: Dubai gold prices rise AED4.5, global rates reach new record high of $3,384
Asian markets struggle amid economic concerns
Asian stock markets struggled to maintain stability following a rapid sell-off of U.S. assets that weakened Wall Street and the dollar. On Monday, China accused Washington of abusing tariffs and cautioned countries against striking a broader economic deal with the U.S. at its expense.
“There remains a chance of a pullback given the rapid rate of gains on display so far this month. But there is reason to believe that buyers will be keen on gold should a pullback occur given that high economic uncertainty remains a prevailing market theme,” Waterer remarked.
Gold, viewed as a safe haven against economic uncertainties, surpassed the $3,300 mark last Wednesday and continued its upward trajectory, crossing $3,400 on Monday. Markets are eagerly anticipating speeches from several Fed officials later this week, hoping for insights into future monetary policy amid concerns about the central bank’s independence.
Other precious metals performance
Spot silver fell 0.4 percent to $32.57 an ounce, platinum gained 0.3 percent to $964.78, while palladium rose 1.3 percent to $939.50.
Copper prices extended their gains on Tuesday, hitting a two-week high as the greenback remained weak. However, concerns regarding hefty U.S. tariffs on top importer China kept investors cautious. Benchmark copper futures on the London Metal Exchange rose 0.7 percent to $9,289.60 a ton, while copper futures expiring in May gained 0.4 percent to $4.7390 a pound.
