Gold prices drop Dh4 in Dubai, with more declines seen likely this week

Dubai: Shoppers in the UAE saw a noticeable dip in gold prices of up to Dh4 per gram by Monday evening, with analysts seeing more declines in the days ahead - giving UAE shoppers and gold investors a fresh reason to reconsider their buying plans.

From Dh372 ahead of the weekend, 22K gold slipped to Dh369/g, while 24K was priced just below Dh400, at Dh398, with 21K at Dh353, and 18K at Dh303. (Check live Dubai gold rates here.)

In regional markets, 22K gold was priced at SAR377 in Saudi Arabia, OMR39.45 in Oman, QAR372 in Qatar, BHD38.2 in Bahrain, and KWD30.27 in Kuwait.

The drop reflects global market trends, with gold prices falling 0.7% to $3,313 an ounce — erasing earlier gains and deepening a previous weekly loss of 0.4%.

The immediate trigger for the price drop was a new tariff agreement between the US and the European Union, easing fears of a full-blown trade war. Investors saw this as a sign of cooling tensions, reducing demand for gold as a safe-haven asset.

However, questions still remain about how the deal will play out — especially when it comes to metals and automobile tariffs. The agreement includes a 15% US levy on most EU exports, but the finer details are still being negotiated.

Meanwhile, all eyes are on ongoing trade talks with China, as countries race to reach agreements with the US before the August 1 deadline. According to a report in the South China Morning Post, Washington and Beijing may extend their current tariff truce by three months, potentially calming market nerves ahead of talks in Stockholm this week.

Despite the recent dip, gold remains one of this year’s top-performing assets, up more than 25% year-to-date. April saw an all-time high above $3,500 an ounce, as investors sought refuge amid global uncertainty — from aggressive US trade policies to conflicts in Ukraine and the Middle East.

Now, the next big test for gold will be this week’s US economic data and Federal Reserve commentary. While the Fed is widely expected to keep interest rates unchanged, traders will be closely analyzing the tone of its messaging. Any hint at future rate cuts could lift gold again, since the metal typically benefits from lower interest rates (as it doesn’t yield interest itself).

Bottom line for UAE buyers? With 22K gold now under Dh370/g, this could be an opportunity for shoppers looking to buy at a relative low. But with global uncertainties still in play, expect more price movement — up or down — in the coming days.