Geopolitical Tensions and Tariff Wars Fuel Gold’s Bullish Run
Dubai, March 17 – Gold prices have surged to an all-time high, crossing the $3,000 per ounce mark, as investors flock to safe-haven assets amid global economic uncertainties. Analysts predict that the yellow metal could rally even higher, driven by geopolitical tensions, tariff disputes, and a weakening US dollar.
Gold Prices Soar Amid Market Volatility
On Friday, gold hit a record-breaking $3,000 per ounce, before closing at $2,986.65 per ounce over the weekend, up 0.23%.
In the UAE, gold prices mirrored the global surge, with rates hitting their highest levels:
✔ 24K gold – Dh360.75 per gram
✔ 22K gold – Dh335.75 per gram
✔ 21K gold – Dh322.00 per gram
✔ 18K gold – Dh276.00 per gram
Gold prices closed the week slightly lower, with 24K settling at Dh359.5, yet analysts remain bullish on further price gains.
Why Gold Prices Are Climbing & Could Surge Beyond $3,000
According to Joseph Dahrieh, managing principal at Tickmill, the escalating tariff war between the US and the European Union has intensified market uncertainty, driving investors toward gold as a hedge against economic turmoil.
✔ US Tariffs Fuel Market Uncertainty
- President Donald Trump’s announcement of a 200% tariff on EU-imported alcohol (including champagne and wine) triggered risk aversion in the markets.
- Additional tariffs on Canada and Mexico set for April 2 have heightened concerns over global economic stability.
✔ Weaker US Dollar Adds to Gold’s Appeal
- With the dollar trading below 104, gold becomes more attractive to international investors.
- Declining US exceptionalism and slowing economic growth have weakened confidence in the dollar, benefiting gold prices.
✔ Federal Reserve’s Next Move Crucial for Gold’s Rally
- The cooling US labor market and slowing inflation could push the Federal Reserve toward a more dovish monetary stance, further boosting gold prices.
- A hawkish stance, however, could limit gold’s gains, as higher interest rates increase the opportunity cost of holding gold.
Geopolitical Risks Could Drive Prices Higher
Beyond economic policy and currency fluctuations, geopolitical developments will play a major role in determining gold’s trajectory.
🔹 Ukraine-Russia Ceasefire Talks
- A potential ceasefire could ease investor concerns, causing gold prices to cool.
- However, uncertainty remains, as Russian President Vladimir Putin has left room for further escalation, which could push gold even higher.
🔹 Middle East Tensions & Global Instability
- Unrest in the Middle East, Asia, and Eastern Europe further strengthens demand for safe-haven assets like gold.
Will Gold Hit $3,200? Analysts Weigh In
While some analysts expect a short-term correction, the long-term outlook for gold remains strong due to ongoing economic and geopolitical uncertainties.
✔ Gold could break past $3,200 if global tensions escalate.
✔ If the US dollar continues to weaken, gold will remain an attractive investment.
✔ However, a more stable economic outlook or stronger Fed stance could cap further gains.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
