Gold prices in Dubai slipped slightly on the first trading day of the week. This happened after prices witnessed a pullback on Monday after reaching a record peak earlier in the session, as trade tensions relaxed following U.S. President Donald Trump’s decision to exempt smartphones and computers from “reciprocal” U.S. tariffs.
In early Monday trading, 24-carat gold in Dubai dropped by AED1 to AED389 per gram, down from AED390 over the weekend, according to the Dubai Jewellery Group. Other variants followed suit: 22K gold fell to AED360.25, 21K to AED345.25, and 18K to AED296.0 per gram.
Despite the slight pullback, gold prices had seen strong gains in recent sessions. Over the weekend, 24K and 22K gold rose by AED3.25 each, reaching AED390 and AED361 respectively, while 21K climbed to AED343.25 and 18K edged up to AED297.
Globally, gold was trading at $3,226.63 per ounce at 9:05 am UAE time, down 0.36 percent. The metal had surged to an all-time high of $3,245.28 per ounce on April 11, driven by heightened trade uncertainty.
Investor demand remains strong amid ongoing market volatility. The SPDR Gold Trust (GLD), the world’s largest physical gold exchange-traded fund, recorded net positive inflows exceeding $2.36 billion over two sessions — its largest since February.
On Friday, the White House announced limited exclusions from its steep reciprocal tariffs, providing temporary relief. However, President Trump clarified on Sunday that these exemptions are only short-term.
“Ongoing trade and tariff dramas have created higher volatility and uncertainty levels in financial markets, and in such an environment, the gold price could be eyeing off a run towards $3,300 in the near term should dollar weakness persist,” said Tim Waterer, chief market analyst at KCM Trade, in comments to Reuters.
Gold, a non-yielding asset, is widely viewed as a hedge against inflation and economic instability. Goldman Sachs has revised its end-2025 gold price forecast upward to $3,700 per ounce, citing robust demand from central banks and increased ETF inflows.
Meanwhile, in top consumer China, the gold price premium widened last week as both consumers and investors turned to the precious metal as a safe haven amid the intensifying U.S.-China trade dispute.
Elsewhere in the metals market, spot silver dropped by over 1 percent to $31.91 per ounce. Platinum rose by 0.6 percent to $948.45, and palladium gained 0.8 percent to reach $922.98.
