3 days ago
Dubai: Gold prices recover ahead of Eid Al Adha holidays
Gold prices recovered in Dubai on Monday morning, rising Dh3 per gram ahead of the Eid holidays.
The 24K variant of the precious metal rose to Dh399.25 per gram on Monday, up from Dh396.25 per gram at the close of the market over the weekend. Among the other variants, 22K, 21K and 18K opened higher at Dh369.75, Dh354.5 and Dh303.75 per gram, respectively.
In the UAE, employees in the public and private sectors will have four-day holidays from Thursday to Friday. Gold jewellery sales pick up during some of the major festivals such as Eid Al Adha.
Spot gold was trading at $3,318.14 per ounce, up 0.84 per cent, as an escalation in the Russian war in Ukraine and US President Donald Trump's fresh threat to double tariffs on imported steel and aluminium prompted investors to seek refuge in safe-haven bullion.
The US president threatened on Friday that he plans to raise tariffs on imported steel and aluminium to 50 per cent from 25 per cent, prompting the European Commission to warn that Europe is prepared to retaliate.
Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, said trade tensions are heating up again.
'Not only does Donald Trump seem unfazed by growing questions around the legitimacy of his tariffs, but he also accused China of violating the trade truce they signed in Geneva earlier this month. The US spent the week cancelling Chinese student visas and imposing fresh restrictions on chip designers doing business in China. China responded, accusing the US of imposing 'discriminatory restrictions,' he said.
'Cherry on top, the US announced an increase in tariffs on steel and aluminium imports to 50 per cent, from the 25 per cent previously in place — perhaps to help facilitate the recent deal between the US and Nippon Steel,' he added.
