Gold Prices in UAE Dip to Lowest Levels in Over Three Weeks Amid Global Market Turmoil

Gold prices continued to decline on Monday, hitting their lowest point in more than three weeks, as widespread market volatility prompted investors to liquidate bullion holdings to manage broader financial losses. The ongoing trade war escalation and growing fears of a global recession have added further pressure to the precious metals market.

In the UAE, gold opened the day notably lower:

• 24K gold was priced at AED 365.75 per gram
• 22K stood at AED 338.50
• 21K at AED 324.75
• 18K at AED 278.25

Globally, spot gold was trading at $3,034.02 per ounce as of 05:37 GMT, down 0.1% from the previous session. Earlier, it had dropped over 1% to its weakest level since March 13. U.S. gold futures, however, saw a slight uptick of 0.5%, reaching $3,051.00 per ounce.

Friday’s market carnage saw gold fall over 3%, driven by the shockwaves of former U.S. President Donald Trump’s unexpected and aggressive tariff hikes. In response, China retaliated with new export controls and a 34% levy on all U.S. goods, deepening fears of a prolonged economic standoff.

Market Reactions and Investor Moves

Amid heightened financial stress, many investors are believed to have sold gold to realise profits or cover margin calls in other asset classes suffering heavy losses. Yeap Jun Rong, a strategist at IG Markets, commented, “With tensions at an all-time high, uncertainty continues to dominate the markets. A quick resolution seems unlikely.”

The panic has not been contained to gold. Last week alone, global recession fears wiped out around $6 trillion from U.S. stock markets. Japan’s Nikkei index also plunged nearly 9% on Monday, signalling widespread investor anxiety.

Central Bank Activity Offers Some Relief

Despite the recent selloff, central banks continue to show long-term confidence in gold. China’s central bank increased its gold reserves in March — marking the fifth consecutive month of accumulation.

“Central bank demand remains a solid support pillar for gold,” noted Tim Waterer, Chief Market Analyst at KCM Trade. “These buying flows may help maintain gold’s upward momentum, even in times of short-term volatility.”

Other Precious Metals

• Spot silver rebounded by 2%, trading at $30.13 per ounce, after recently hitting a seven-month low.
• Platinum gained 1% to trade at $926.09, while
• Palladium edged up nearly 1% to $919.50.

With markets on edge and inflation, trade tensions, and geopolitical uncertainty all playing a role, gold is expected to remain a key asset on investors’ radars — even amid price fluctuations.

Source: Adapted from original reporting by Khaleej Times – “UAE: Gold prices fall to lowest levels in over 3 weeks as market sell-off hits bullion”, published April 7, 2025.