Dubai gold rate surges as Trump tariff relief takes over markets

Dubai: Missed out on pre-booking your next gold purchase?

Shoppers in the UAE who had such plans have just seen gold prices zoom higher by a near $132 an ounce in just hours after the US announced a pause on tariffs on all trading partners except for China. For now, gold is ruling supreme at $3,116 after having dropped to under $3,000 for a limited period at various points in the last two days.

At the UAE level, the Dubai gold rate had already gained a near Dh13 a gram for 22K in under two days. Compared to the Dh334.5 on Tuesday, the Dubai gold rate is now showing Dh347 for a gram of 22K and should firm up further when the first rate is set for the day.

Incidentally, the highest ever Dubai gold rate as of now is the Dh351.75 on April 3.

“Shoppers in the UAE typically can take a Dh2-Dh3 a gram increase in a day  or two in their stride – but not as much as Dh13,” said a jewellery retailer. “To be honest, no one saw this high a jump in gold prices coming – most were expecting it to remain around Dh335-Dh338 levels.

“The worst part is that there are many shoppers who kept delaying their pre-booking and price lock-in for the April 30 ‘Akshaya Trithiya’ buying. Now, they will just have to wait for any price drops before.”

Other jewellery retailers say they will have to rework their campaigns and promotions for the rest of this month to ensure shoppers do turn up on Akshaya Trithiya day, one of the biggest in the UAE gold shopping calendar.

A lot has changed overnight. President Trump opted for the pause on sky-high tariff hikes on all imports except those from China – and the reaction in the markets was immediate. The US stocks recorded some of the biggest leaps in a day in recent times, while Asia markets are pulling out of the mood downers they had been going through.

Relief among investors is showing up on all asset prices – and gold among them.

But there is no relief for shoppers and jewelers now.

“It’s already been a difficult three months for new gold sales, and if April 30 doesn’t come up to expectations, it’s going to be even more difficult,” said a jeweler.

"Sure, people come to exchange old jewellery, but the trade makes money when jewellery is bought new. With the kind of price shocks we have gotten these days, it's difficult for shoppers to buy new."