Dubai Gold Price Rises Above AED406 as Trump’s Tariff Assurance Calms Global Markets

Gold prices in Dubai rose on Tuesday after U.S. President Donald Trump assured that gold imports would not face tariffs, easing global market tensions. The move comes ahead of key U.S. inflation data that could influence the Federal Reserve’s interest rate decisions.

In Dubai, 24-carat gold climbed AED2.00 to AED406.75, while 22-carat rose AED2.00 to AED376.75. Additionally, 21-carat gold gained AED1.75 to AED361.25, and 18-carat increased AED1.50 to AED309.50. Globally, spot gold edged up 0.2% to $3,354.35 per ounce, and U.S. gold futures for December delivery held steady at $3,404.72.

Market relief followed Trump’s announcement on his Truth Social platform declaring, “Gold will not be Tariffed!” This ended days of uncertainty caused by a U.S. Customs and Border Protection letter suggesting possible tariffs as high as 39% on standard bullion bars, which dominate imports from Switzerland. The White House confirmed it is drafting an executive order to clarify the matter.

The removal of tariff fears shifted investor focus back to U.S. economic indicators, particularly July’s Consumer Price Index (CPI) figures, due later today. Economists expect core CPI to rise by 0.3% monthly, pushing the annual rate to 3%. Traders are currently pricing in an 85% chance of a Fed rate cut next month, according to the CME FedWatch Tool.

In other metals, spot silver gained 0.6% to $37.81 per ounce, platinum rose 0.6% to $1,334.24, and palladium advanced 0.7% to $1,143.93. Federal Reserve Governor Michelle Bowman reaffirmed her forecast for three rate cuts before the end of 2025, but stressed flexibility depending on economic data.

Source: Economy Middle East