emirates7 - Gold prices dropped by over Dh5 per gram in Dubai on Monday morning, slipping below the Dh400 mark as global gold prices fell under $3,300 per ounce. This decline was driven by optimistic developments in US-China trade talks and a stronger US dollar.
As of 9am UAE time, the price of 24-karat gold stood at Dh395.25 per gram, down from approximately Dh400.5 at the previous week’s close. Other gold categories also saw declines: 22-karat dropped to Dh366, 21-karat to Dh350.75, and 18-karat to Dh300.75 per gram.
Globally, spot gold was trading at $3,277.53 per ounce, reflecting a 1.5 per cent decrease. The dip followed a constructive conclusion to US-China trade discussions on Sunday, aimed at reducing the US trade deficit.
The trade war between the two nations had previously escalated with reciprocal tariffs, raising concerns over a potential global economic downturn.
According to Linh Tran, a market analyst at xs.com, gold prices were pressured by the improving outlook of the US-China negotiations and a notable recovery in the US dollar.
Reports from US media suggested the Trump administration might reduce tariffs on Chinese imports from 145 per cent to 50 per cent. Markets interpreted this as a positive signal towards de-escalation, following weeks of rising tensions and tariff hikes.
“As a result, investors moved away from safe-haven assets like gold, and there was a slight uptick in risk appetite across equities and currencies,” Tran noted.
Additionally, gold’s decline was further influenced by the strengthening of the US dollar.
As of 9am UAE time, the price of 24-karat gold stood at Dh395.25 per gram, down from approximately Dh400.5 at the previous week’s close. Other gold categories also saw declines: 22-karat dropped to Dh366, 21-karat to Dh350.75, and 18-karat to Dh300.75 per gram.
Globally, spot gold was trading at $3,277.53 per ounce, reflecting a 1.5 per cent decrease. The dip followed a constructive conclusion to US-China trade discussions on Sunday, aimed at reducing the US trade deficit.
The trade war between the two nations had previously escalated with reciprocal tariffs, raising concerns over a potential global economic downturn.
According to Linh Tran, a market analyst at xs.com, gold prices were pressured by the improving outlook of the US-China negotiations and a notable recovery in the US dollar.
Reports from US media suggested the Trump administration might reduce tariffs on Chinese imports from 145 per cent to 50 per cent. Markets interpreted this as a positive signal towards de-escalation, following weeks of rising tensions and tariff hikes.
“As a result, investors moved away from safe-haven assets like gold, and there was a slight uptick in risk appetite across equities and currencies,” Tran noted.
Additionally, gold’s decline was further influenced by the strengthening of the US dollar.