Gold prices are poised for their worst three-day decline in over four years as traders respond to a flurry of headlines concerning President Donald Trump’s tariff policies. Gold prices have slipped below $3,000 as losses extend into a third day amidst ongoing tariff turmoil.
In Dubai, gold rates have dropped, with 24-carat gold decreasing by AED5 to AED359.75. Similarly, 22-carat gold lost AED1, reaching AED333.25. Additionally, 21-carat gold experienced a decrease of AED1, settling at AED319.50, while 18-carat gold edged down to AED273.75.
Bullion decline amid market volatility
Bullion prices slipped by as much as 2.7 percent before paring some losses on Monday. Officials from the Trump administration took to television to reassure investors that severe tariffs will not derail the economy, even as experts caution that growth may contract and inflation could spike. Trump has also threatened an additional 50 percent tariff on China unless Beijing withdraws its 34 percent retaliatory duty on U.S. goods.
Traders have been offloading the precious metal alongside other assets since Thursday, as Trump’s tariffs have heightened fears of a global trade war and economic recession. The retreat of gold prices comes just days after the metal reached a record high due to haven demand amid escalating geopolitical risks. While gold typically thrives during periods of upheaval—and is still up 14 percent this year—extreme market dislocation can sometimes lead investors to liquidate their holdings.
Read more: Dubai gold prices up AED0.75, global rates fall to 3.5-week low
Current market trends for gold prices
As of 7:55 p.m. in New York, spot gold was 0.75 percent higher at $2,995.80 an ounce. Silver has advanced after experiencing a two-day drop, while both platinum and palladium have seen declines.
Gold prices fell to a more-than-three-week low on Monday amidst a broader market sell-off, continuing their downward trend as investors liquidated bullion to mitigate losses in other trades due to concerns over a global recession fueled by an escalating trade war. In Dubai, gold rates rose, with 24-carat gold increasing by AED0.75 to AED367.00. Similarly, 22-carat gold gained AED1, reaching AED340.00. Additionally, 21-carat gold saw an increase of AED1 to AED326.00, while 18-carat gold edged up by AED0.50 to AED279.25.
Impact of tariff policies on gold prices
Gold prices dropped more than 3 percent on Friday, caught in the market’s downturn after U.S. President Donald Trump’s unexpectedly high tariff measures sent shockwaves through global markets. The decline in gold prices, traditionally a safe haven during uncertain times, has led dealers to speculate that investors may be offloading bullion to realize profits and potentially cover losses or meet margin calls on other assets.
China’s response to U.S. tariffs
China retaliated on Friday against the tariffs imposed by Trump with a series of counter-measures, including additional levies of 34 percent on all U.S. goods and export restrictions on certain rare earth metals. Fears of a global recession wiped out nearly $6 trillion in value from U.S. stocks last week, causing Japan’s Nikkei share average to plummet nearly 9 percent early on Monday.
U.S. Federal Reserve Chairman Jerome Powell indicated that tariffs have increased the risk of rising inflation and slower growth, highlighting the challenging path ahead for policymakers at the U.S. central bank.
