DUBAI: Gold has become the centre of attention in Dubai as prices soared dramatically following US President Donald Trump’s surprise decision to halt tariff hikes on all countries except China.
The move has triggered a global surge in asset values, with gold leading the way.
In just a matter of hours, global gold prices spiked by around $132 per ounce, lifting the Dubai rate to new heights that have left both retailers and consumers stunned.
Dubai gold rate
At the time of writing, the Dubai gold rate for 22K is listed at Dh347 per gram, a stark rise from Dh334.5 on Tuesday. This Dh12.5 spike in less than 48 hours is sending ripples through the city’s busy jewellery trade. The price of 24K gold has hit Dh376.5 per gram, up Dh13.5 from its Dh363 rate on Wednesday. For 21K and 18K, prices now stand at Dh334.5 and Dh286.5 respectively – reflecting Dh12.25 and Dh10.25 increases from just a day earlier.
Such a steep increase is unusual even in a dynamic market like Dubai. According to local jewellers, shoppers are typically able to tolerate daily shifts of Dh2 to Dh3 per gram. A Dh13 surge, however, is rare and has caught many off guard.
Many residents who had been planning purchases for the upcoming Akshaya Trithiya festival on April 30 are now rethinking their options. The sudden surge has forced shoppers to delay buying, hoping for a potential correction. As a result, retailers are urgently reworking their promotional strategies in an effort to retain footfall during one of the most lucrative periods for gold sales in the UAE.
While there has been some activity around exchanging old jewellery, retailers stress that real profits lie in the sale of new items — a market segment currently struggling under volatile pricing.
The highest-ever recorded Dubai rate for 22K gold remains Dh351.75, logged on April 3.
Trump tariffs pause
The dramatic shift came after Trump announced a 90-day pause on previously imposed sweeping tariffs, now allowing a universal 10 percent baseline for all trading partners – with the exception of China. Duties on Chinese imports were simultaneously increased to a massive 125 percent, causing a stir across financial markets.
Market responses were swift. In the US, the S&P 500 climbed 6 percent to 5,281.44, ending a bleak stretch of losses. The Nasdaq Composite index surged 7.6 percent, while the Dow Jones Industrial Average rose by 5.51 percent. By late Wednesday, the Nasdaq had climbed even further, recording a stunning 10.8 percent jump to 16,917.49 – reflecting investor optimism following Trump’s move.