Gold prices rose on Tuesday as investors sought out safe assets while the U.S. dollar weakened when market participants studied inflation data that could influence Fed policy during the rising trade tensions and weakening economic growth following President Donald Trump’s tariff application. The gold rates in UAE decreased throughout today. Gold prices for 24-carat experienced a price decrease of AED1.75 making it settle at AED349.25. Similarly, 22-carat gold decreased by AED1.75 to AED324.75. The price of 21-carat gold dropped by AED1.50 to AED311.50 and 18-carat gold decreased by AED1.25 to a price of AED267.
Spot gold prices increased 0.3 percent at $2,897.39 an ounce before 02:50 GMT while U.S. gold futures maintained a stable value at $2,900.80.
International buyers found profitable conditions for gold purchases because the dollar indexresaured a four-month low last week which decreased bullion prices while benchmark 10-year U.S. Treasury yields decreased. Trump spoke about an upcoming “transition period” in a Sunday interview yet he avoided predicting if his tariffs would trigger a U.S. recession which subsequently reduced worldwide stock values and made investors seek defensive investments. The market faced gloomy expectations from traders because of economic slippage which led Wall Street to maintain downward movement. In an interview on Friday, Trump stated, “There is a period of transition, because what we’re doing is very big. …We’re bringing wealth back to America. …That’s a big thing, and there are always periods; it takes a little time.”
New tariffs and market uncertainty
Trump enforced new tariffs at 25 percent on Mexican and Canadian imports alongside new levies targeting Chinese shipments during last Tuesday. The U.S. President implemented temporary exemptions for various Mexican and Canadian imports from his tariffs during a month’s period which resulted in market uncertainties and intensified inflation and growth-related worries. Investors will study CPI data revealed Wednesday so they can evaluate how future Fed interest rate decisions might turn out.
Read more: UAE gold prices up AED0.25, global rates rise on dollar weakness
Profit booking among gold traders amid stagflation concerns
Gold dealers sold their holdings as they expected U.S. economic conditions to develop into stagflationary conditions. Distinct economic data reveals that business operations have significantly slowed down recently. According to Atlanta Fed GDP Now predictions real GDP performance for the first quarter of 2025 will decline by 2.4 percent after a COVID-19 break.
The Greenback shows signs of recovery by gaining movement from its losses according to U.S. Dollar Index (DXY) measurements. The U.S. Dollar Index (DXY) shows a slight 0.09 percent gain which brought its value to 103.99 and nearly reached the 104.00 barrier.
Global economic concerns and inflation data
Worldwide economic worries have intensified because China’s February inflation showed -0.7 percent annual decline surpassing the -0.5 percent projection from economic experts. The economy appears likely to slow down at a faster pace. Commercial traders will focus on U.S. inflation statistics which are upcoming due to the existing economic circumstances. The strong inflation data will reduce speculations about additional Federal Reserve policy ease and impede the U.S. central bank from lowering interest rates at its upcoming meetings.
During this week the United States economic calendar presents JOLTs Job Openings statistics on Tuesday leading to the Consumer Price Index (CPI) announcement on Wednesday.
The non-yielding metal becomes less attractive when interest rates grow because investors view it as protection against both political risks and inflation. Silver spot price maintained its $32.11 an ounce value while platinum rose 0.15 percent to $958.25 yet palladium dropped 0.6 percent to $937.00.
