Gold prices dropped to a more-than-three-week low on Monday amidst a broader market sell-off, continuing their decline as investors liquidated bullion to mitigate losses in other trades due to concerns over a global recession stemming from an escalating trade war.
In the Dubai, gold rates increased, with 24-carat gold rising 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.
Spot gold decreased by 0.3 percent to $3,027.90 an ounce as of 03:31 GMT, following a drop of more than 1 percent earlier in the session, reaching its lowest point since March 13.
Gold prices fell 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 across global markets.
Investor behavior amidst market uncertainty
The decline in gold prices, typically a safe haven during uncertain times, led dealers to speculate that investors might be offloading bullion to realize profits and potentially cover losses or meet margin calls on other assets.
Read more: UAE gold prices dip AED3.75, global rates set for fifth consecutive weekly gain
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 heightened the risk of increased inflation and slower growth, underscoring the challenging path ahead for policymakers at the U.S. central bank.
Performance of other precious metals
Spot silver saw a gain of 2.3 percent to $30.22 an ounce, after reaching its lowest level in almost seven months.
Spot platinum rose by 1 percent to $925.50, while palladium increased by 1.5 percent to $925.00.
Dubai: The city of gold
Dubai is renowned as a global hub for gold trading, often referred to as the “City of Gold.” The Gold Souk, a traditional market, features over 700 retailers offering a vast array of gold jewelry, bars, and coins, making it a must-visit for tourists and locals alike. The city’s gold is known for its high purity, with 24 karat being the highest standard available.Â
Dubai’s competitive pricing is attributed to low taxes, with only a 5 percent VAT applied, and the ability to haggle, which is common practice in the markets. Also, the UAE imports gold from various countries, including Africa and South America.Â
