Global gold prices have recorded a sharp spike, crossing the $3,400 per ounce mark as market jitters deepen in the wake of renewed tariff threats from former U.S. President Donald Trump. The sudden rally is being attributed to rising investor anxiety over trade tensions and global economic stability, particularly as Trump’s potential return to the White House continues to shape financial market expectations.
In Dubai, one of the world’s most active precious metals hubs, the price of gold has jumped to AED 378.75 per gram for 24K gold—its highest level since July 21. The surge reflects growing demand for safe-haven assets, as investors around the world react to the unfolding geopolitical and economic uncertainties.
Analysts say the sharp upward movement is not surprising, especially following Trump’s latest remarks indicating a willingness to impose additional tariffs on imports, particularly targeting Chinese goods. Such protectionist policies typically rattle global supply chains and increase inflation risks, prompting investors to shift their portfolios toward more stable, inflation-resistant assets like gold.
The current trend is also being fueled by a weaker U.S. dollar, coupled with speculation that central banks—particularly in emerging markets—are increasing their gold reserves as a strategic buffer against currency volatility. Traders in key markets such as Dubai, Mumbai, and London are reporting high volumes, with demand driven not just by retail buyers but also by institutional investors hedging against market shocks.
Local market watchers in the UAE note that jewellery sales have slightly slowed due to high prices, but gold dealers are seeing stronger interest from bulk investors and wholesalers taking advantage of the bullish momentum. With the Dh378.75 rate representing a near three-week peak, many anticipate further gains if macroeconomic tensions persist.
Economists suggest that unless there is a major shift in U.S. trade policy rhetoric or a sharp correction in global financial markets, gold is likely to maintain its upward trajectory in the short to medium term. For Nigerian investors, particularly those with exposure to commodities or diaspora remittances tied to precious metals, this movement presents both opportunities and risks.
As always, the international gold market remains sensitive to political announcements, currency movements, and inflation data. With global focus now fixed on developments in the U.S. and China, financial analysts are urging cautious optimism while highlighting gold’s renewed position as a strategic asset in uncertain times.