Dubai: Gold Prices At 3-Week High, Budget-Conscious Shoppers Hold Purchases

Gold prices hit a three-week high in Dubai at the start of the week due to US President Donald Trump's threat to impose 30 per cent tariffs on imports from the European Union countries and Mexico.

The 24K was trading at Dh404.75 per gram at the opening of the markets in Dubai on Monday. The higher prices are prompting many budget-conscious shoppers to put off their purchases and wait for the prices to drop to a more acceptable level.

Among the other precious metal variants, 22K, 21K and 18K were trading higher at Dh375.0, Dh359.5 and Dh308.25 per gram, respectively. Spot gold was trading at $3,356.66 per ounce.

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Ozkardeskaya, senior analyst at Swissquote Bank, said Trump continued his tariff reveals over the weekend, announcing that the EU and Mexico would be hit with 30 per cent tariffs from August 1.

"That's far more than what the EU expected. They were hoping for a figure closer to what the UK secured: a 10 per cent tariff, with exceptions for key sectors like metals and pharmaceuticals. Instead, they got a big, fat 30 per cent," he said.

"However, Trump did leave the door open for further negotiations and some fine-tuning, but given the level of tariffs unveiled since last week, you have to wonder whether it's worth the time and energy to negotiate with a government that appears to have lost the plot - or if it's better to pursue other deals with other nations. That's what the Europeans are now discussing: finding new friends," he added.

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