Gold Prices Tumble to 3-Week Lows in UAE Amid Global Market Sell-Off

Dubai, April 7, 2025 — Gold prices in the UAE dropped to their lowest levels in over three weeks on Monday, as a global market sell-off spurred by heightened trade tensions and recession fears led investors to liquidate assets, including the traditional safe-haven metal.

UAE Gold Rates Drop Sharply

At market opening, 24K gold was priced at Dh365.75 per gram, while 22K traded at Dh338.50. Other variants such as 21K and 18K were listed at Dh324.75 and Dh278.25 per gram, respectively — all marking declines from previous sessions.

Internationally, spot gold dipped 0.1% to $3,034.02 an ounce, after earlier dropping over 1% to its lowest since March 13. Meanwhile, U.S. gold futures rose 0.5% to $3,051.00, signaling investor uncertainty amid broader market volatility.

Trump Tariffs and Global Repercussions

The downturn followed a steep 3% drop in gold on Friday, triggered by U.S. President Donald Trump’s aggressive new tariffs and China’s retaliatory levies of up to 34% on American goods. This escalation sent shockwaves across global markets, with over $6 trillion in market value wiped out from U.S. equities last week. Japan’s Nikkei index plunged nearly 9% on Monday alone.

“There’s a lot of confusion and uncertainty in the markets,” said Yeap Jun Rong, market strategist at IG, noting that few investors are expecting a swift resolution to the U.S.-China trade conflict.

Investor Behavior: Profit-Taking and Margin Calls

Despite gold’s typical role as a safe-haven during crises, analysts suggest the recent dip could reflect profit-taking or efforts to cover losses and margin calls from other falling assets. The current market correction has forced many to liquidate even their most stable investments.

Central Banks Still Buying Gold

Notably, gold remains in high demand among central banks, with China’s central bank adding to its reserves for a fifth consecutive month in March.

“Such consistent buying reflects a long-term bullish sentiment,” said Tim Waterer, chief market analyst at KCM Trade. “Central bank flows are likely to support gold’s upward trajectory in the medium to long term.”

Precious Metals Overview

• Spot Silver: Up 2% to $30.13 an ounce, rebounding after hitting a seven-month low.

• Platinum: Rose 1% to $926.09.

• Palladium: Gained nearly 1% to $919.50.