Gold prices in Dubai saw a slight decline on Monday morning, with the 24-karat variety dropping by Dh1 per gram at market opening. At 9:00 a.m. UAE time, the price of 24K gold fell to Dh403.75 per gram, compared to Dh404.75 at the close of trading over the weekend.
Other gold variants also experienced price reductions. The 22-karat variety dropped to Dh373.75 per gram, while 21K and 18K declined to Dh358.25 and Dh307.25 per gram, respectively.
Globally, spot gold was trading at $3,350.20 per ounce, down by 0.25 percent amid developments in international trade policy. The dip followed an announcement from U.S. President Donald Trump, who extended the deadline for imposing tariffs on European Union imports to July 9. The tariff, initially scheduled for June 1, could see levies of up to 50 percent on EU goods if implemented.
The precious metal has maintained elevated levels in recent months, largely driven by the ongoing global trade tensions involving the United States, China, and other major economies. These geopolitical uncertainties have kept investor demand for safe-haven assets like gold robust.
Citi Bank recently revised its short-term forecast for gold prices, raising its target to $3,500 per ounce due to the escalating tariff threats and broader geopolitical risks. In a market update, the bank projected gold to consolidate between $3,100 and $3,500 per ounce, an upward revision from its previous estimate of $3,000 to $3,300.
Linh Tran, a market analyst at xs.com, noted that current investor sentiment is leaning towards a “soft landing” scenario for the U.S. economy. “This outlook may be prompting investors to rebalance their defensive positions, leading to profit-taking in gold following a strong three-day rally,” said Tran.
However, Tran added that the retreat in gold prices remains within expected technical boundaries and does not signal a broader trend reversal. “The selling pressure appears temporary, with the market still fundamentally bullish on gold due to ongoing global risks,” she said.
As global markets await further clarity on U.S.-EU trade negotiations and economic indicators from major economies, gold prices are likely to remain volatile in the short term, with continued investor interest in precious metals as a hedge against uncertainty.
