UAE: Gold Prices Hit 3-Week Low Amid Market Sell-Off

Gold prices fell on Monday to their lowest levels in over three weeks, continuing a downward trend amid a broader market sell-off. Investors were seen offloading bullion to cover losses in other trades as fears of a global recession, triggered by an escalating trade war, intensified.

In the UAE, 24K gold opened at Dh365.75 per gram, while 22K was priced at Dh338.50 per gram. Other variants, such as 21K and 18K, opened at Dh324.75 and Dh278.25 per gram, respectively.

Spot gold was down 0.1% at $3,034.02 an ounce, having earlier dropped more than 1% to its lowest level since March 13. U.S. gold futures rose 0.5% to $3,051.00. On Friday, gold experienced a significant drop of over 3% following U.S. President Donald Trump's unexpected tariff measures, which sent shockwaves through global markets. In response, China introduced countermeasures, including additional tariffs on U.S. goods and export restrictions on rare earth metals.

"There is a lot of confusion and uncertainty in the markets about whether there is room for de-escalation, with tensions at an extreme right now and no clear resolution in sight," said IG market strategist Yeap Jun Rong.

Despite gold’s typical status as a safe-haven asset during times of uncertainty, the recent price drop suggests that investors might be selling off bullion to realize profits or cover losses in other assets. Last week, global recession fears led to nearly $6 trillion in losses in U.S. stock markets, and Japan's Nikkei share average plummeted by nearly 9% on Monday.

In contrast, China's central bank added gold to its reserves for the fifth consecutive month in March, signaling that central banks continue to view gold as a vital asset. KCM Trade's chief market analyst Tim Waterer noted, "Central banks are evidently still keen on adding gold to their reserves, which has been underpinning support for the precious metals. Such buying flows may help maintain gold’s upward trajectory."

Meanwhile, other precious metals saw slight gains, with spot silver increasing by 2% to $30.13 an ounce and spot platinum rising by 1% to $926.09. Palladium also gained nearly 1%, reaching $919.50.