The gold rally continued as prices jumped nearly Dh3 per gram to a new all-time high at the opening of the markets in Dubai on Wednesday.

At 9am UAE time, 24K rose Dh1.50 to Dh344 per gram while 22K opened higher at Dh320.25 per gram, up Dh2.75 per gram.

Among the other variants, 21K and 18K were trading higher at Dh307 and Dh263 per gram, respectively.

Globally, gold was trading at a record $2,854.86 per ounce, up 0.43 per cent, due to fears of a new trade war between the US and China afterin response to new

Rania Gule, senior market analyst at , said concerns about the potential economic fallout from the tariffs imposed by US President Donald Trump provide strong support for gold as a safe-haven asset.

“In this context, the key question remains: Can gold break its record highs again, or will economic pressures force it to retreat? In my view, Trump's recent decision to suspend tariffs on Mexico and Canada after reaching an agreement on border security has boosted investor confidence in traditional financial markets, leading to a slight increase in risk appetite," she said.

"This shift towards riskier assets pressures gold, reducing its appeal as a haven. At the same time, I believe the Federal Reserve's more hawkish stance has helped drive US bond yields higher, supporting the dollar and adding further negative pressure on gold prices."

However, Gule said these negative factors were still facing resistance from the supportive elements for the yellow metal, particularly inflation concerns tied to Trump’s protectionist policies.