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

Gold prices in the UAE dropped to their lowest levels in over three weeks on Monday, tracking a broader global market downturn. Investors are believed to be liquidating gold holdings to offset losses or meet margin calls in other struggling asset classes, amid growing concerns over a potential worldwide recession sparked by intensifying trade tensions.

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 Shake Markets

The sharp decline in gold followed a steep 3% loss on Friday, when former U.S. President Donald Trump unveiled stronger-than-anticipated tariff measures, sparking fears of a full-blown trade war. In response, China imposed new tariffs — including a hefty 34% levy on U.S. imports — and introduced export restrictions on select rare earth elements.

With global financial markets rattled, investors are scrambling to assess the next steps. “There’s a great deal of uncertainty and speculation about whether any resolution is in sight,” said Yeap Jun Rong, Market Strategist at IG. “Current tensions remain at a peak, and a de-escalation doesn’t appear imminent.”

Gold, typically viewed as a safe-haven asset, saw unusual selling pressure as traders possibly took profits or raised cash for other positions impacted by the broader market rout. Last week alone, fears of a global slowdown erased around $6 trillion in value from U.S. equities. Japan’s Nikkei also dropped nearly 9% on Monday.

Central Banks Keep Buying Gold

Despite recent price declines, 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.