Gold prices in Dubai slipped below the Dh400-per-gram mark on Friday, following a global downturn in precious metal markets triggered by fresh developments in the U.S.-China trade landscape.
The 24-karat variant of gold was trading at Dh397.25 per gram by midday, while other popular purities also declined. The 22K, 21K, and 18K varieties were priced at Dh367.75, Dh352.75, and Dh302.25 per gram, respectively, according to retail data from Dubai’s gold market.
This marks a sharp decline from Tuesday’s peak, when the 24K price surged to a record Dh420 per gram. In just three days, gold prices have dropped nearly Dh23 per gram in the local market, mirroring a broader global retreat in the metal’s value.
Internationally, gold was trading at $3,306.97 per ounce around noon, having earlier dipped below the $3,300 threshold in the day’s early session.
The downward trend followed reports that China may exempt some U.S. imports from its steep 125 percent retaliatory tariffs. The Chinese government has asked domestic companies to identify goods eligible for exemption — a move analysts interpret as a signal that Beijing is seeking to ease the economic pressure of the prolonged trade war.
Financial experts say the shift in tone from China contributed to a “risk-on” sentiment in global markets, causing investors to pull back from safe-haven assets like gold.
“Though the risk-on tone still exists amid the easing US-China tariff tone and U.S. President Donald Trump’s note on Fed chief Jerome Powell, the easing of monetary policy seems to outweigh,” said Vijay Valecha, Chief Investment Officer at Century Financial.
Valecha noted that, despite short-term fluctuations, gold prices have remained broadly supported by expectations of monetary easing in major economies and a softer U.S. dollar.
However, uncertainty still lingers. U.S. Treasury Secretary Scott Bessent on Thursday dismissed reports suggesting Washington may consider unilateral tariff reductions, keeping markets on edge about the direction of the U.S.-China trade negotiations.
Dubai, known for its thriving gold trade, often reflects global trends with a slight lag, and the recent price volatility has prompted renewed interest among investors and shoppers alike, especially as gold remains a popular hedge in uncertain economic times.
Analysts continue to monitor international developments closely, with further shifts in U.S.-China relations and U.S. Federal Reserve policy likely to influence gold prices in the days ahead.
