Will shoppers in Dubai encounter increased gold prices, reaching AED 400, following the recent US tariffs?
In recent developments, the imposition of tariffs by the US on Swiss gold imports has caused a ripple effect in the global gold market, potentially leading to higher prices in the UAE and other major bullion centers.
The US, in an attempt to control trade, has imposed a 39% duty on 1-kilobar bullion imports from Switzerland, a move that has increased the costs of Swiss gold for American buyers. This increased demand for alternative gold sources might shift buying patterns toward markets like the UAE, a major global gold trading hub.
Anil Dhanak, Managing Director at Kanz Jewels, a prominent jewellery retailer in the UAE, stated that buying gold in the UAE offers price and tax advantages compared to the US. The current Dubai gold rate for 22K is Dh379.25 per gram, and the price of a 24K gram gold in Dubai is Dh409.5, making it an attractive option for those seeking gold.
The diversion of gold trade to London could lead to costly recasting or re-stamping of bars, paperwork gambits, and potential battles with regulators over chain-of-custody concerns. However, this shift could benefit London as suggested by Nigel Green, Chief Executive of deVere Group, who also described the surge in gold futures prices due to the US tariffs as "tariff mania".
The uncertainty about future Swiss gold shipments to the US is affecting gold prices. Although there is no guarantee that prices will ease below $3,300-$3,350 levels, there is a likelihood of upward pressure on gold prices both in the UAE and globally as a result of the US tariffs on Swiss gold imports.
Switzerland is a dominant player in the global supply of refined gold, and any reduction in Swiss gold exports to the US could tighten global gold supplies and encourage higher premiums in other major bullion centers. The increased global trade volatility from tariffs tends to boost gold's safe-haven appeal, supporting higher global prices.
It is important to note that gold often acts as a safe haven asset, and uncertainty in trade and tariffs tends to elevate demand and prices worldwide. The all-time high for gold futures remains at $3,534 per ounce for deliveries in December, a testament to the increased demand for gold as a safe-haven asset.
In conclusion, the US tariffs on Swiss gold imports could lead to higher gold prices in the UAE and globally by increasing costs and disrupting supply chains. The all-time high for the Dubai gold rate remains Dh383.75, but with the current trends, it is likely that prices will continue to rise.
[1] Source: Context from 2025 shows that Trump's trade policies, including tariffs on Swiss imports, have made US-Swiss trade more volatile and increased goods trade deficits.
- The news of US tariffs on Swiss gold imports could potentially lead to higher gold prices in the UAE, as stated by Anil Dhanak, Managing Director at Kanz Jewels.
- The imposition of tariffs on Swiss gold is affecting not only the US market but also the business environment in global bullion centers, such as the UAE.
- Social media platforms might play a crucial role in spreading awareness about the impact of US tariffs on gold prices, influencing personal-finance decisions related to investing in gold.
- The surge in gold prices due to the US tariffs could be an opportunity for technology-driven businesses in the finance and entertainment sectors to develop new apps or platforms that provide real-time gold price updates, market analysis, and investment strategies.
