By: Economy Middle east

Gold prices surged on Wednesday as investors sought safety amidst mounting uncertainty over U.S. trade policy. Spot gold rose 0.76 percent to $5,197.56 per ounce, recovering from a profit-taking dip in the previous session. The upward momentum was primarily fueled by a complex legal and political battle in Washington; after the U.S. Supreme Court struck down a series of President Trump’s executive orders on tariffs, the administration began collecting a temporary 10 percent global import tax while signaling a push to increase it to 15 percent. This policy “tug-of-war” has sowed significant confusion in global markets, making the non-yielding metal more attractive as a hedge against volatility.

UAE gold rates climb

Local gold rates in the UAE mirrored the international surge, with prices increasing across all carats. The rate for 24-carat gold rose by AED 4.75 to AED 624.50, while 22-carat gold climbed to AED 578.25. Other variants also saw notable gains, with 21-carat reaching AED 554.50, 18-carat moving up to AED 475.25, and 14-carat gold settling at AED 370.75. These hikes represent a sharp reversal from earlier in the week, directly tracking the heightened global risk premium.

Fed signals cautious stance

Despite the geopolitical noise, U.S. Federal Reserve officials have signaled a “wait-and-see” approach, showing no immediate appetite for changing interest rate policy. Markets are currently pricing in three 25-basis-point rate cuts for 2026, though the timing remains sensitive to upcoming inflation data. Technical analysts suggest that gold is currently facing immediate resistance at $5,205 per ounce; a sustained break above this level could lead to a further rally toward the $5,244 range.

High-stakes Geneva talks

Geopolitics remain a central pillar of support for bullion. Oman’s Foreign Minister, Badr Albusaidi, confirmed that the U.S. and Iran are set to hold a third round of nuclear talks this Thursday in Geneva. The high stakes of these negotiations, combined with a military buildup in the Middle East, have lifted the entire precious metals complex. Spot silver jumped 2.95 percent to $90.09 per ounce, while platinum and palladium saw even more dramatic gains, rising 3.89 percent to $2,245.00 and 1.64 percent to $1,793.00, respectively.