James Campion, a prominent investor at eToro, said: “Spot gold rose above AED 11,300 per ounce, trading near AED 11,500 Thursday afternoon, before continuing to climb to record highs, registering a 19.22% year-to-date return. This rise reflects a recovery from a temporary dip caused by a lack of liquidity on Monday, when gold touched AED 10,900 after a period of extreme volatility in global markets.
This reaction highlights gold’s resilience in complex
market environments. While an easing of general trade tensions would normally
reduce demand for safe-haven assets, the escalating US-China dispute and the
inflationary risks associated with tariffs continue to support the precious
metal’s prices.
Investor appetite for gold remains strong, with global
gold-backed funds seeing massive inflows of US$21 billion (226 tons) during the
first quarter of 2025, the second-highest quarterly inflow on record. Not at
all, according to market data.
Campion added: "Gold remains my largest
investment, and the outlook looks positive over the next 100 days. A
combination of inflationary risks from tariffs and ongoing geopolitical
uncertainty provides a strong foundation for continued upward movement in gold
prices."
Although the temporary halt of some tariffs has brought some calm to the markets, the fundamental drivers that pushed gold higher – including the ongoing geopolitical uncertainty related to US-China trade tariffs, potential inflationary risks, and questions about future central bank policies – remain strong, supporting the positive outlook for the precious metal.