Dubai — Gold and silver prices climbed sharply in Dubai on Wednesday, driven by renewed investor demand for safe-haven assets following the introduction of fresh US tariffs on imported goods.
Data from the Dubai Jewellery Group showed 24K gold trading at Dh624.5 per gram at market open, up Dh4.75 from Tuesday. Other gold variants also rose, with 22K at Dh578.25, 21K at Dh554.5, 18K at Dh475.25, and 14K at Dh370.75 per gram. Meanwhile, silver was trading at $89.48 (Dh328.56) per ounce, a 2.22 percent increase. Spot gold also gained 0.62 percent to $5,190.4 per ounce around 9 a.m. UAE time.
The market movement followed President Donald Trump’s implementation of new tariffs on Tuesday, initially set at 10 percent, intended to address what the White House described as “large and serious United States balance-of-payments deficits.” The tariffs come after the US Supreme Court struck down several global duties, prompting the administration to recalibrate its trade strategy.
Rania Gule, senior market analyst for Mena at xs.com, said silver’s volatility reflects its dual role as both an investment and an industrial commodity. “Following the announcement of a 15 percent global tariff by the US president, prices surged by more than 6 percent in a single session before retreating as momentum faded and traders shifted toward profit-taking,” she explained. Gule emphasized that such sharp swings are a response to sudden political shocks rather than a fundamental trend reversal.
Analysts noted that trade tensions often boost demand for hedging assets, particularly in a global environment of slowing growth and heightened geopolitical uncertainty. Silver, however, remains more sensitive to the economic cycle than gold due to its industrial applications.
The price movements in Dubai mirror broader trends in global markets, highlighting how geopolitical decisions can trigger rapid repricing of commodities. For investors and industries alike, the developments underscore the ongoing sensitivity of precious metals to international trade policies and economic uncertainty.
