Why UAE gold shoppers are better off delaying purchases after Dh5 price spike

Dubai: Planning some gold shopping this weekend? UAE residents might be better off giving the idea another think after the latest Dubai gold price rise.

This weekend, a gram of 22K will be Dh374.25 after a near Dh5 rise last evening. This makes it the costliest price after June 23’s Dh377. “This will make for an extremely dull weekend at the Dubai Gold Souq,” said a gold retailer. “A Dh1-Dh2 increase can be taken in stride, but not Dh3-Dh5. Next week could be more difficult.”

If dollar’s weakness and worries over the US were the reasons for the rise on June 23, this time it’s got to do with renewed concerns about what US President trump has in mind when it comes to imposing tariffs on trade partners.

This week, he’s already mentioned 50% for Brazil and 35% for Canada, and more updates are on the way, with particular focus on what the EU might be hit with. So, investors went back to a safe haven asset – gold – that they have gotten quite familiar with.

The rise in Dubai gold price has all to do with that uncertainty about tariffs – and finding safety in gold.

In the global markets, bullion closed the week at $3,355 an ounce – what will be more worrying for gold shoppers is that gold futures are pricing the asset at $3,370.

So, at the start of next week, be prepared for more volatility. Expect more of the same until the August 1 deadline, which is the US cut-off date for trade deals.