Gold nears $3,000: Will prices drop soon or soar even further?

Dubai: Gold prices have been on a rollercoaster ride, but there’s no denying the yellow metal’s relentless climb, now hitting an all-time high of $2,971 per ounce - a new record that may leave buyers uneasy. Check the latest rates here.

The latest surge follows fresh US tariff threats, with President Donald Trump announcing a potential 200% tariff on EU alcoholic beverages. This escalation has deepened global trade uncertainty, sending investors rushing to gold as a safe haven.

Last week, gold traded between $2,854 and $2,943 before closing with a slight weekly gain. Now, with the latest record-breaking rally, buyers are left wondering: Will prices cool down anytime soon?

Gold’s rally – how long will it last?

“Gold thrives on uncertainty,” said Georgina Effel, a Dubai-based precious metals retail analyst. “The ongoing tariff wars and market jitters are fueling its rise. In the short term, this momentum is unlikely to fade.”

While inflation fears and stock market volatility support gold’s rally, some factors could slow its pace. President Trump’s Ukraine peace initiative may help ease geopolitical tensions, and if tariffs turn out to be less severe than feared, gold could face headwinds.

Buy or Wait?

Investment experts suggest caution. “Buying dips is preferred over chasing the rally,” said Zubair Shakeel, an Abu Dhabi-based investment manager. “If economic data weakens or the Federal Reserve signals more support, gold could climb further. But if markets stabilize, the metal may lose some shine.”

Bottom line? Gold remains well-positioned for gains, but buyers should watch for shifts in economic data, Fed policies, and geopolitical updates before making their move.