UAE Gold Prices Slip to 3-Week Low Amid Global Market Turmoil

UAE gold prices dropped to their lowest levels in over three weeks on Monday. This decline tracked a broader global market downturn. Investors are likely liquidating gold holdings to offset losses in other asset classes. Consequently, concerns are growing over a potential worldwide recession sparked by intensifying trade tensions.

Current Retail Rates in the UAE

In the UAE, the price of 24K gold opened at AED 365.75 per gram, while 22K was priced at AED 338.50. The 21K and 18K variants began the day at AED 324.75 and AED 278.25 per gram, respectively.

On the global front, spot gold dipped by 0.1% to $3,034.02 an ounce as of 05:37 GMT, after having dropped over 1% earlier in the session – marking its lowest point since March 13. Meanwhile, U.S. gold futures saw a modest increase of 0.5%, reaching $3,051.00.

Trade War Jitters Impact UAE Gold Prices

The sharp decline in UAE gold prices followed a steep 3% loss on Friday. This happened after President Donald Trump unveiled stronger tariff measures. In response, China imposed new levies on U.S. imports. Therefore, global financial markets are rattled as investors assess the next steps.

“There’s a great deal of uncertainty,” said Yeap Jun Rong, Market Strategist at IG. He noted that a de-escalation doesn’t appear imminent. Although gold is a safe-haven asset, it saw unusual selling pressure as traders raised cash for other positions.

Central Banks Keep Buying Gold

Despite the fact that UAE gold prices have slipped, central banks appear committed to gold accumulation. China’s central bank increased its gold reserves in March for a fifth consecutive month — signaling continued long-term confidence in the metal.

“Gold remains a preferred asset for central banks,” said Tim Waterer, Chief Market Analyst at KCM Trade. “This steady demand could help support gold’s longer-term upward trend, even as short-term volatility plays out.”

Other precious metals also moved on Monday: spot silver climbed 2% to $30.13 per ounce, recovering slightly after touching a seven-month low. Spot platinum rose 1% to $926.09, while palladium gained nearly 1% to reach $919.50.

Source: Adapted from original reporting by FXStreet – “UAE: Gold prices fall to lowest levels in over 3 weeks as market sell-off hits bullion”, published April 8, 2025.