Dubai Gold Price Outlook After Trump Tariffs
The Dubai gold price is again under the spotlight after US President Donald Trump’s latest tariff announcement, targeting Swiss gold exports. Traders are now debating whether bullion rates will ease or remain near record highs, with jewellery demand in the UAE hinging on whether prices fall to Dh360 per gram levels.
Why the Trump Tariffs Matter for Gold
Gold prices spiked sharply in global markets as New York traders dealing in 1-kilo bars placed aggressive bets to secure physical delivery. According to market analysts, the tariffs have created new demand pressures in the US, forcing more gold imports ahead of potential cost increases.
Switzerland’s Crucial Role in Gold Supply
Switzerland processes around 70% of the world’s unrefined gold annually, making it a major hub for the bullion trade. Leading refiners like Valcambi, PAMP, and Metalor supply banks, ETFs, and central banks across the globe.
However, the US has now imposed a 39% tariff on Swiss gold exports, impacting nearly two-fifths of the $61.5 billion worth of gold shipped across the Atlantic last year. Analysts warn this could disrupt global bullion logistics.
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Impact on Dubai’s Gold Market
In the UAE, the Dubai gold price for 22K currently stands at Dh378.75 per gram, just shy of the record Dh383.75. Since April, gold has traded above $3,300 per ounce, occasionally breaching $3,400. Market sources suggest that local prices are unlikely to be hit as hard as in the US, since UAE traders can still import from Switzerland without facing these tariffs.
The Dh360 Price Target for Jewellery Demand
Retailers in Dubai believe that jewellery sales will only see a significant recovery if the Dubai gold price falls back to around Dh360 per gram. At current rates, high prices are discouraging many shoppers, especially in the 22K jewellery segment.
Possible Price Scenarios Ahead
If the US and Switzerland reach a trade deal, analysts expect global bullion prices to stabilize, potentially giving the UAE market some breathing room. Conversely, prolonged tariff tensions could keep gold elevated, delaying any major demand rebound in Dubai’s jewellery sector.
For now, both shoppers and retailers are keeping a close eye on market trends, hoping for a correction that will make gold purchases more affordable.
