Gold prices edged up on Monday as worries about U.S. President Donald Trump’s forthcoming reciprocal tariffs and the possibility of interest rate reductions by the Federal Reserve this year bolstered bullion’s appeal as a safe haven.
In the UAE, gold rates decreased by AED1.75, with 24-carat gold dropping to AED363.75 and 22-carat gold declining to AED337. Additionally, 21-carat gold fell to AED323, while 18-carat gold slipped to AED277.00.
Spot gold was up 0.1 percent at $3,025.12 an ounce, as of 00:05 GMT. U.S. gold futures increased by 0.3 percent to $3,030.70.
Read more: UAE gold prices dip AED0.5, global rates set for third weekly gain on rate cut hopes
Gold rates reached an all-time high of $3,057.21 per ounce last Thursday as trade tensions heightened safe-haven demand. This zero-yield bullion is regarded as a protective measure against geopolitical turmoil, economic uncertainties, and inflation. Tariffs will remain a significant concern. Trump unveiled a series of reciprocal tariffs set to take effect on April 2. These tariffs could exacerbate inflation and impede economic growth.
Last week, the Fed maintained its benchmark rate within the 4.25 percent to 4.50 percent range, as anticipated. Policymakers envision the U.S. central bank implementing two quarter-percentage-point cuts by the year’s end.
Nevertheless, New York Federal Reserve President John Williams remarked on Friday that the U.S. central bank’s monetary policy is suitably aligned. He noted the various uncertainties confronting the economy and emphasized that there is no immediate need to alter interest rates.
On the physical front, discounts on gold in India reached a more than eight-month high last week as demand waned after spot prices soared past record levels. Spot silver rose by 0.1 percent to $33.06 an ounce, platinum increased by 0.7 percent to $981.25, and palladium climbed by 0.5 percent to $962.54.
