Bullion is on track for a second consecutive weekly increase, with a 2.5 per cent gain so far
Gold reached an all-time high on Friday, driven by uncertainty over US tariffs, trade tensions and growing expectations of monetary policy easing by the Federal Reserve.
According to the Dubai city of gold, the prices in UAE reached Dhs360 for 24K, Dhs335 for 22K, Dhs321.25 for 21K and Dhs275.25 for 18K.
Spot gold was down 0.1 per cent at $2,984.71 an ounce as of 0701 GMT. Earlier in the session, safe-haven bullion hit a record high of $2,993.80 and hovered near the key milestone of $3,000.
Bullion is on track for a second consecutive weekly increase, with a 2.5 per cent gain so far.
US gold futures rose 0.2 per cent to $2,997.50.
“The risk-off market stance reflects investors’ expectations that trade tensions are likely to get worse before it cools, and are turning to safe-haven gold once again as a hedge against portfolio volatility,” said IG market strategist Yeap Jun Rong.
In the latest development of US President Donald Trump’s multi-front trade war, the European Union retaliated to blanket US tariffs on steel and aluminium.
“The psychological $3,000 level is now coming into view for gold prices, and as we approach the second quarter, where reciprocal tariffs could trigger another wave of market turbulence, gold remains a compelling safe-haven asset in an environment where alternatives are scarce,” Rong said.
Trump’s tariffs are widely expected to fuel inflation and economic uncertainty, and have prompted gold to reach multiple record highs in 2025.
Gold is seen as a hedge against political risks and inflation.
Investors now await the Fed’s monetary policy meeting, scheduled for Wednesday. The central bank is expected to keep its benchmark overnight interest rate in the 4.25-4.50 per cent range.
Non-yielding bullion thrives in a low-interest-rate environment.
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