This week, gold prices rose sharply due to robust demand for safe haven assets, a declining dollar, and increased investor worry about delayed US trade talks. Gold futures for August delivery increased 1% to $3,339.70 on Tuesday, while spot gold increased 0.8% to $3,328.71 an ounce. This comes after a 1.5% increase on Monday, which almost made up for losses from the week before that were brought on by a brief ceasefire between Iran and Israel.
A number of macroeconomic variables are driving the gold price increase, chief among them being concerns over President Donald Trump’s impending July 9 deadline for finalising trade agreements with several key countries. If deals are not reached with nations like Japan, investors are preparing for the prospect of high retaliatory tariffs, which might reach 50%.
Local bullion rates in the United Arab Emirates are already reflecting higher worldwide prices. The price of 24-carat gold was Dh400.25 per gramme as of Tuesday, whilst 22-carat, 21-carat, and 18-carat gold were Dh370.75, Dh355.50, and Dh304.75, respectively. With the help of the Summer Surprises 2025 retail event, foot traffic at Dubai’s Gold Souk and other jewellery stores had just started to recover when the spike occurred.
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